FX.co ★ Offshore Yuan Logs 3rd Straight Gain

The offshore yuan appreciated to surpass 7.17 per dollar on Thursday, registering its third straight session of gains. This surge occurred as the US dollar weakened in light of a more dovish stance from the Federal Reserve. Market participants have largely factored in the possibility of an interest rate cut by September, with some expecting a more substantial reduction of 50 basis points due to softer-than-anticipated US inflation data and a cooling labor market. In the Asian region, Chinese firms are increasingly pursuing the expansion or establishment of operations in Indonesia to counter the ramifications of high US tariffs. Indonesian exports to the US are subject to a tariff rate of merely 19%, as opposed to over 30% for exports originating from China. Earlier in the week, President Trump extended the US-China trade truce until November 10, providing ongoing respite from the rising tariffs and export restrictions that had unsettled global markets. In China, investors are now turning their attention to crucial economic indicators, including housing prices, industrial production, retail sales, and unemployment figures.