2025.09.0102:57:07UTC+00Offshore Yuan Hovers Near 10-Month Highs

The offshore yuan experienced a slight depreciation toward 7.13 per dollar on Monday, yet it remained near its peak level in nearly a decade. This was as traders assessed conflicting signals arising from economic and geopolitical developments. On the economic data front, China's manufacturing sector showed signs of recovery in August 2025, with factory activity increasing to 50.5, up from 49.3 in July and exceeding the anticipated 49.5. This represents the strongest performance since March. Growth in output was driven by improved new orders and purchasing activity, while the decline in foreign demand mellowed, although the recovery was moderate. In parallel, global market sentiment was influenced by a US federal appeals court ruling that declared most of Trump's reciprocal tariffs unlawful, as judges concluded he had overstepped his authority with the broad tariffs announced on April 2. Additionally, markets monitored the progress in India-China relations after leaders from both nations emphasized their roles as partners in development, not rivals, during a two-day Shanghai Cooperation Organization (SCO) summit, where President Xi is anticipated to speak.