Chinese Yuan Remains Sideways

The offshore yuan steadied around 7.18 per dollar, remaining in a sideways trading range since mid-July as investors continued to assess the economic and policy outlook in China.

The yuan came under constant pressure this year from disappointing economic data which indicated weakening domestic and global demand.

The People’s Bank of China lowered key short-term interest rates in June for the first time in ten months, but decided to keep rates unchanged at their July fixings.

Chinese authorities also pledged to ramp up policy support to boost growth, though investors looked for more concrete plans and forceful measures from Beijing to shore up a flagging economy.

Further monetary tightening from other major central banks in a bid to bring down inflation also weighed on the yuan.