China's yuan poised to strengthen for a third week in a row on strong exports

Business Recorder reported that the Chinese yuan held firm against the greenback on Friday and was on track for a third consecutive weekly gain, supported by strong exports. The onshore currency traded at 6.6907 per dollar in late-morning trade, little changed from Thursday's close, after touching 6.6897 earlier, its strongest level since January 2023. The People's Bank of China set its guidance rate at 6.7220, the firmest since February 2023.

The central bank governor said on Thursday that Beijing is wary of rapid yuan appreciation, arguing that global imbalances cannot be fixed through exchange rate moves alone. Nanhua Futures credited robust exports with lending support to the currency, while the dollar index retreated from 18-month lows on profit-taking and dovish comments from a Fed official. Nomura said September's US producer price rise, the fastest in 4-1/2 years, was not strong enough to justify an October hike.

Investors are looking ahead to a fireside chat by Fed Chair Warsh at the IMF-World Bank meetings in Bangkok, along with China's GDP data due Monday. A Reuters poll suggests third-quarter growth picked up slightly from its lowest pace in over three years, to 4.4% year-on-year. IMF Asia and Pacific department director Krishna Srinivasan urged Beijing to provide larger fiscal stimulus to support its shaky economy. Pantheon Macroeconomics said exports remain robust even with higher tariffs, climbing export prices and a firmer currency.