The offshore yuan has fallen to its lowest level since November last year as the People's Bank of China (PBOC) loosens its control over the currency.

While there has been no major movement, this trend suggests that China's strategy of strengthening the yuan to boost foreign investor sentiment in domestic equities might be faltering. The Chinese economy has been struggling for an extended period, with its investments in the manufacturing sector peaking, while the construction and real estate sectors are already facing significant challenges. The consumption engine has always been weak in China, a consequence of its investment and export-led growth model.

We will continue to monitor the yuan closely. If it continues to weaken against the US dollar, it could negatively impact other Asian currencies, such as the Indian rupee.


This may fuel a new leg of demand from Chinese citizens for Gold and Silver as they fear more devaluation in Yuan.


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