The offshore yuan weakened toward 7.17 per dollar on Wednesday, breaking a four-session winning streak, as positive sentiment toward China’s financial initiatives was clouded by ongoing conflict in the Middle East. Beijing unveiled fresh guidelines aimed at boosting domestic consumption through financial tools, with the goal of supporting employment, increasing household incomes, and stimulating broader economic growth.
Investors are now turning their attention to the upcoming July Politburo meeting for potential indications of further economic stimulus. Meanwhile, the People’s Bank of China injected CNY 300 billion into banks on June 25 via a one-year lending facility to maintain liquidity. On the geopolitical front, US President Donald Trump accused both Israel and Iran of violating a newly declared ceasefire, expressing particular frustration with Israel for launching major strikes on Iran. Earlier that day, Iran fired a barrage of missiles, resulting in four fatalities.
