FX.co ★ Offshore Yuan Edges Lower

On Friday, the offshore yuan dipped slightly to approximately 7.18 per dollar amidst investor reactions to a slew of underwhelming economic data. In July 2025, industrial output slowed to its lowest level in seven months, descending from a recent three-month peak and missing market expectations. Retail sales growth, too, diminished to a six-month low in the same period, while unemployment rose to its highest in four months. Conversely, the decline in new home prices across 70 cities in China lessened in July. While this represents the 25th consecutive month of decline, it is also the slowest pace of descent since March 2024. These concerning statistics underscore the mounting difficulties faced by Chinese policymakers as they strive to stabilize an economy beset by weak demand and external challenges. In response, Beijing has ramped up policy initiatives and committed to bolstering consumption and curbing excessive price competition to achieve its 2025 growth target of approximately 5%. Week-on-week, the yuan is poised to maintain stability for the second successive week.