FX.co ★ Offshore Yuan Hits Fresh 13-Month High

The offshore yuan has surpassed the 7.07 mark against the US dollar, marking a new thirteen-month high, bolstered by firm official direction and heightened corporate demand towards the year-end. The People’s Bank of China set the daily reference rate at 7.0796 per dollar, marking its strongest position since mid-October 2024, highlighting the central bank’s dedication to currency stability. Additionally, the seasonal increase in demand from companies, as they typically convert more of their dollar holdings to address administrative and payroll requirements, provided further support. On the international front, the yuan gained from a weaker US dollar, driven by increased market expectations for a Federal Reserve interest rate reduction in December. Furthermore, investors are eagerly anticipating the forthcoming Politburo meeting and the Central Economic Work Conference (CEWC) in December, which are expected to shed light on the economic strategy and policy direction for the coming year.