10.09.202502:16:04UTC+00Offshore Yuan Steady for Second Session

The offshore yuan remained stable for the second straight session on Wednesday, trading at approximately 7.12 per dollar, as market participants assessed the most recent inflation data. In August, the annual consumer price index declined by 0.4%, compared to a stagnant reading in July and falling short of the anticipated 0.2% decrease. Concurrently, producer prices fell by 2.9% year-over-year in August, moderating from a 3.6% decrease the previous month and aligning with market expectations. This marks the 35th consecutive month of producer deflation, although it is the smallest decline since April. These numbers indicate the government's initiatives to boost domestic demand and moderate excessive competition and price reductions in major industrial sectors. Investors are now turning their attention to significant developments as China’s 14th NPC Standing Committee convenes for its 17th session from today through Friday. On an international note, U.S. President Trump has called on the European Union to levy 100% tariffs on Chinese and Indian imports to exert pressure on Russia, with Washington expressing its willingness to adopt similar measures.