Offshore Yuan Approaches 33-Month High

EthereumCraftsman · 2026-02-02T03:25:18+00:00

The offshore yuan rose to about 6.95 per dollar, driven by strong manufacturing PMI data indicating factory activity growth. Despite contrasting official figures and ongoing deflation concerns, sentiment improves as markets anticipate further PMI and inflation data.

EthereumCraftsman

2026-02-02 03:25:18

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The offshore yuan strengthened to around 6.95 per dollar on Monday, reversing the previous week’s losses and approaching its highest in thirty-three months, after a strong manufacturing PMI data boosted sentiment. A private survey showed China’s factory activity expanding at its fastest pace since October, rising to 50.3 in January from 50.1. The pickup was driven by faster production and front-loading of shipments ahead of the extended Lunar New Year holiday, and it contrasted with the official readings, which slipped back into contraction territory. Together, the data offered a cautiously positive start to the year for the world’s second-largest economy, even as economists continue to flag lingering deflation risks. Meanwhile, foreign exchange settlement demand remained strong ahead of the holidays and the central bank’s measured guidance through its daily fixings continued to support the yuan. Markets now await additional private PMI numbers this week and inflation data next week.

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