FX.co ★ Offshore Yuan Holds at Strongest Level Since 2023

The offshore yuan held steady around 6.74 per dollar on Friday, hovering near its strongest level since February 2023, as investors upgraded their expectations for further policy support following the latest PMI releases. Official data showed China’s manufacturing PMI slipping to 49.2 in July 2026 from 50.3 in June, its first contraction since February. Meanwhile, the non-manufacturing PMI declined to 49.0 from 50.2, indicating a renewed downturn after two months of modest expansion. These weak readings came on the heels of Q2 GDP figures that missed expectations and fell below the government’s 4.5%–5% target range. At its latest Politburo meeting, authorities pledged timely policy actions and vowed to accelerate public spending and the deployment of government bond funds. Still, policymakers are expected to proceed cautiously with any additional stimulus in light of robust, double-digit export growth.