S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
Trump Requests $11 Billion More in Farm Aid as Rising Costs Pressure U.S. Farmers 
Australian Household Spending Rebounds Strongly in May as Travel and Dining Drive Consumer Growth 
SpaceX Eyes Starlink Mobile Phone Service to Challenge Verizon, AT&T, and T-Mobile 
Wall Street Ends Lower as AI Stocks Drag Markets, Fed Rate Outlook Shifts 
South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
Australia Jobs Growth Strengthens Rate Hike Outlook 
Bank Regulation Rollbacks in the U.S. and UK Could Increase Financial Risks, Study Warns 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
Wall Street Ends Mixed as Micron Surges, Apple Drops After Price Hikes 
South Korea’s KOSPI Jumps Over 5% as Samsung, SK Hynix Rally on Micron Earnings Boost 
US Dollar Slips After PCE Inflation Data as Fed Rate Hike Expectations Stay Elevated 
Oil Prices Drop as Strait of Hormuz Shipping Recovers 
White House Seeks $87.6 Billion Emergency Funding for Iran War, Farmers, and Ebola Response 
China’s yuan strengthened to a fresh 32-month high against the U.S. dollar on Monday, supported by a combination of central bank guidance, a weaker dollar, and seasonal corporate demand ahead of the Lunar New Year. The People’s Bank of China (PBOC) continued its strategy of carefully steering the currency higher by setting a stronger official midpoint, while still keeping it weaker than market expectations to control the speed of appreciation.
Before trading began, the PBOC fixed the midpoint at 6.9843 per dollar, its strongest level since mid-May 2023. However, the fixing was notably 551 pips weaker than a Reuters market estimate, marking the largest weak-side deviation from forecasts since such data became available in 2022. This reflects the central bank’s balancing act: allowing gradual yuan strength without triggering excessive volatility.
In onshore trading, the yuan rose to a high of 6.9539 per dollar, the strongest since May 2023, before easing slightly. The offshore yuan followed a similar trend, hovering near 6.95 per dollar. Overall, the Chinese currency has gained about 0.5% against the dollar so far this year, building on a strong 4.5% appreciation in 2025, its best annual performance since 2020.
Analysts expect Chinese authorities to increasingly resist further yuan appreciation. Barclays noted that policymakers are likely to introduce more measures in the coming weeks and months to ease upward pressure, maintaining a cautious outlook for a potential medium-term reversal.
Seasonal factors have also played a role in supporting the yuan. As the Lunar New Year approaches in mid-February, Chinese exporters typically convert more foreign currency receipts into yuan to cover expenses such as employee bonuses. Market participants expect this support to fade soon as holiday-related conversions slow.
Meanwhile, broader Asian currency markets saw gains after the Japanese yen surged on speculation of possible coordinated intervention by U.S. and Japanese authorities, adding another layer of complexity to regional foreign exchange dynamics.
