FX.co ★ Offshore Yuan Weakens on Disappointing Data

The offshore yuan depreciated to approximately 7.09 per dollar on Friday, pulling back from a two-week peak achieved in the previous session, as disappointing economic data dampened market sentiment. Fixed-asset investment declined by 1.7% year-on-year over the period from January to October 2025, representing a steeper drop than both market forecasts and the prior month's figures. Additionally, industrial production slipped to its lowest point in over a year at 4.9% in October, while retail sales registered their fifth straight month of slowing growth, hitting a more than year-long trough at 2.9%. On a slightly positive note, the unemployment rate decreased to 5.1%, aligning with market predictions and showing an improvement from the previous month. The latest economic indicators, coupled with an unexpected downturn in exports recently, have amplified concerns regarding China's economic growth trajectory and the stress on global trading partners facing enhanced competition from Chinese products. Despite the losses incurred on Friday, the yuan is still poised for a weekly advancement.