Offshore Yuan Rises to 6.81 per Dollar as PBOC Holds 3.0% and 3.5% LPRs
Updated
Updated · TradingView · May 25
Offshore Yuan Rises to 6.81 per Dollar as PBOC Holds 3.0% and 3.5% LPRs
2 articles · Updated · TradingView · May 25
The offshore yuan edged up to about 6.81 per dollar, recovering part of the prior session’s losses after the People’s Bank of China left benchmark lending rates unchanged in May.
The PBOC kept the one-year loan prime rate at 3.0% and the five-year rate at 3.5% for a 12th straight month, signaling caution as Middle East tensions lift external risks.
China’s domestic backdrop has softened, with industrial output slowing to its weakest pace since July 2023 and retail sales easing to the lowest since December 2022.
Inflation pressures have still picked up, as higher energy prices and conflict-linked supply-chain disruptions pushed both consumer and producer prices higher.
The yuan’s rebound remained limited by a stronger US dollar, with emerging Asian currencies broadly under pressure since the Middle East conflict began in February.
Will the strong US dollar and Mideast conflict spark a new debt crisis for emerging markets?
With global stagflation looming, can central banks curb inflation without causing a worldwide recession?
How is the Hormuz Strait crisis forcing a permanent realignment of global trade routes for food and industrial goods?