FX.co ★ Yuan Holds Near 32-Month Highs

The offshore yuan remained stable around 6.95 per dollar on Monday, hovering near its highest level in thirty-two months, thanks to China's initiatives to strengthen financial connections with Hong Kong. The People's Bank of China intends to bolster Hong Kong's status as the primary offshore yuan hub, introduce new yuan-based financial products, and extend swap facilities. These policy-driven strategies are part of a broader effort to enhance liquidity and accessibility for global investors, thereby stabilizing the yuan and boosting its international utilization. Additionally, the central bank's gradual appreciation tactics, via its daily fixings and foreign-exchange dealings from exporters, provided further backing to the currency. Market participants are now turning their attention to the forthcoming local PMI data to assess the economic health of the world's second-largest economy, with both official and private surveys set for release this week. Meanwhile, attention is also on trade matters, as U.S. President Trump has cautioned that Canada may face tariffs of up to 100% if it secures a trade agreement with China.