24.06.202604:06:22UTC+00Offshore Yuan Hits 1-Month Low

The offshore yuan weakened to around 6.80 per dollar on Wednesday, its lowest level in a month, as sustained strength in the US currency continued to pressure the exchange rate. The dollar remained underpinned by growing expectations that the Federal Reserve will raise interest rates in September, with markets now pricing in roughly a 70% probability of a hike.

Additional downward pressure on the yuan came from the People’s Bank of China, which has been setting the daily reference rate at weaker-than-expected levels. On Wednesday, the central bank fixed the yuan at 6.8195 per dollar, extending its longest stretch of softer fixings since April 2025.

At the same time, China has effectively suspended certain tungsten exports to Japan, while shipments of rare-earth magnets fell to a one-year low in May, when Beijing first implemented its global export-control regime. These restrictions have remained in place amid heightened tensions following Taiwan-related comments by Japanese Prime Minister Sanae Takaichi.