FX.co ★ Offshore Yuan Weakens, Still Set for 4th Weekly Gain

The offshore yuan weakened to approximately 7.03 per dollar, pulling back from a more than one-year high achieved in the previous session, influenced by a softer-than-anticipated daily fixing. The People’s Bank of China established the midpoint rate at 7.0550 per dollar, which was 172 pips below Reuters' projection. Such softer fixings have been ongoing since late November, underscoring the central bank's attempts to temper a rapid currency appreciation. Meanwhile, investors are focused on the forthcoming one-year and five-year loan prime rate decisions anticipated over the weekend, which could provide insights into the broader economic landscape. Additionally, attention is directed towards the Standing Committee of the 14th National People's Congress, which is slated to hold its 19th session in Beijing from December 22 to 27. Despite the yuan’s slight decline on Friday, it is poised to achieve its fourth consecutive weekly gain, marking its longest winning streak since June.