15.12.202503:34:51UTC+00Yuan Hits 15-Month High Despite Weak Data

The offshore yuan strengthened to approximately 7.05 per dollar, reaching its highest point since late September of the previous year, despite a series of underwhelming economic indicators. November’s data highlighted a slowdown in momentum, with retail sales growth experiencing a significant decline and falling notably short of predictions, thereby highlighting continued challenges in consumer spending. Industrial production also saw a modest reduction from the previous month and did not meet expectations, while fixed-asset investment shrank more than predicted, marking its steepest decline since the pandemic era. The ongoing property market downturn continued to exert substantial pressure, as real estate investment contracted at an accelerated rate and home price reductions intensified in major cities. Nonetheless, economists suggested that the downturn in investment and housing conditions bolsters expectations for further fiscal and monetary intervention early next year. In addition, the yuan gained traction from a weaker US dollar following the Federal Reserve’s interest rate cut and its indication of a less aggressive policy trajectory than previously anticipated.