Offshore Yuan Logs 3rd Straight Gain

The offshore yuan strengthened past 7.17 per dollar on Thursday, marking its third consecutive session of gains, as the greenback weakened amid a more dovish outlook from the Federal Reserve. Markets have nearly fully priced in a rate cut for September, with some investors even anticipating a more aggressive 50 bps reduction amid softer-than-expected US inflation data and a cooling labor market. In Asia, Chinese companies are increasingly looking to expand or establish operations in Indonesia as they seek to mitigate the impact of steep US tariffs. Goods exported from Indonesia to the US face a tariff rate of only 19%, compared to over 30% for Chinese exports. Earlier this week, President Trump extended the US-China trade truce until November 10, offering continued relief from escalating tariffs and export restrictions that had rattled global markets. In China, investors now await key economic data, including home prices, industrial output, retail sales, and unemployment figures.