Offshore Yuan Snaps 5-Session Decline

The offshore yuan rose to around 7.19 per dollar on Thursday, snapping a five-session losing streak, even as investors weighed disappointing PMI data against cautious optimism from the latest Politburo meeting. China’s official PMI data pointed to slowing momentum in July, with the composite PMI falling to a three-month low of 50.2 from June’s 50.7. Manufacturing activity remained in contraction territory, dropping to 49.3 from 49.7, while the services PMI eased to 50.1 — its weakest level in eight months — from 50.5. Despite the weak data, sentiment found some support from Wednesday’s Politburo meeting. The 24-member decision-making body pledged to support economic growth and rein in “disorderly competition,” amid mounting economic challenges. However, policymakers stopped short of announcing large-scale stimulus, instead shifting their focus toward addressing overcapacity issues in the economy. Over the month, the yuan is set for its first drop after two consecutive months of gains.