Offshore Yuan Treads Narrow Range

The offshore yuan held near 7.19 per dollar on Tuesday, trading within a tight range as market focus shifts to the US Federal Reserve’s Jackson Hole symposium later this week for hints on policy direction and potential impacts on global currencies. Markets have been tracking the dollar amid expectations of a Fed pivot, pricing in an 84% chance of a 25-basis-point cut in September, down from 98% last week after stronger US wholesale and retail data tempered hopes of a larger move. In China, markets now await this week’s loan prime rate decision, with expectations leaning toward an unchanged stance. The People’s Bank of China pledged to refine its monetary policy framework, promising to adjust its moderately loose stance amid persistent weakness in the property sector. Elsewhere, investors also watched the meeting between US President Donald Trump, Ukrainian President Volodymyr Zelenskiy, and European leaders as Washington pushes Ukraine to accept a rapid peace deal.