Yuan steady after dollar softens, awaits US CPI

China’s yuan was little changed against the US dollar on Tuesday, with overnight weakness in the greenback supporting the currency while higher dollar deposit rates at some Chinese banks limited its advance. The onshore yuan traded at 6.671 per dollar at 0300 GMT, 14 pips stronger than the previous close, while the offshore rate gained about 0.02% to 6.6685.

Business Recorder reported that investors were awaiting US consumer inflation figures due later Tuesday for indications about the Federal Reserve’s policy path. Economists polled by Reuters expected October headline inflation of 3.9% and core inflation of 2.8% year on year; a higher reading could strengthen expectations of further rate increases and support the dollar. The yuan has gained about 10% against the dollar since early 2025, and China’s central bank recently raised the foreign-currency reserve requirement for banks to moderate its appreciation.