FX.co ★ Offshore Yuan Weakens on Disappointing PMI Data

The offshore yuan has depreciated to approximately 7.27 per dollar as investors responded to underwhelming PMI data from China. Recent official statistics indicate that the manufacturing PMI decreased in April 2025 for the first time since January, descending from a one-year high in March and failing to meet market predictions. Likewise, the services PMI slipped from a three-month high recorded the previous month, also falling below expectations. In parallel, a private survey highlighted a decline in manufacturing PMI in April from a previous four-month peak. This disappointing data has rekindled apprehensions regarding China's economic prospects amidst persistent trade tensions with the United States, despite recent measures aimed at stimulating the economy. In its latest communication, China’s Foreign Ministry circulated a video on social media appealing to the international community to stand against US economic coercion. Although the video refrains from directly referencing the significant tariffs exchanged between the two nations, it delivers a resilient message to the US and calls for global solidarity.