Offshore Yuan Gains Seen Allaying China’s Currency Woes, for Now
- Greenback retreat boosts offshore yuan near 7 per dollar level
- Move puts onshore yuan on track to advance after holidays
This article is for subscribers only.
The offshore yuan’s rally is set to boost the onshore unit once trading resumes after the Golden Week holidays in China, taking the pressure off the central bank to defend the currency.
That’s because the offshore yuan is poised for its biggest weekly gain since May on the back of the dollar’s retreat, as traders bet the Federal Reserve may ease off on its policy tightening. It portends a strong opening for the currency traded in Shanghai after a seventh straight month of losses.