Offshore Yuan Edges Lower

The offshore yuan edged lower to around 7.18 per dollar on Friday, as investors weighed a batch of disappointing economic data. Industrial output slowed to a seven-month low in July 2025, from a recent three-month high and falling short of market forecasts. Adding to the unease, retail sales growth eased to a six-month low in July, while the unemployment rate edged up to a four-month high. Meanwhile, China’s new home prices in 70 cities contracted at a softer pace in July. Although this marked the 25th consecutive month of decline, it was the slowest rate of decline since March 2024.These underwhelming figures highlight the growing challenges for Chinese policymakers as they work to stabilize the economy amid soft demand and external pressures. Beijing has recently intensified policy efforts and pledged to spur consumption and curb excessive price competition to meet its 2025 growth target of around 5%. Over the week, the yuan is on track for its second consecutive week of stability.