Austria’s AA Credit Rating Affirmed as Fitch Highlights Stable Outlook 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Vietnam’s November Trade Sees Monthly Decline but Strong Year-on-Year Growth 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
U.S. Stocks Rise as Cooler Inflation Boosts Hopes for Fed Rate Cut 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
China’s foreign exchange reserves increased modestly in May, rising by just $3.6 billion to $3.285 trillion, according to data released Saturday by the State Administration of Foreign Exchange (SAFE). The gain fell short of market expectations, with a Reuters poll forecasting reserves to reach $3.292 trillion. In April, reserves stood at $3.282 trillion.
Despite the rise, the increase was lower than anticipated, reflecting ongoing fluctuations in global currency markets and asset valuations. SAFE attributed the change to “the combined effects of exchange rate conversion and asset price changes.”
During the same period, the Chinese yuan weakened by 1.05% against the U.S. dollar, while the dollar index—which measures the greenback against a basket of major currencies—dipped 0.23%, indicating broader weakness in the U.S. currency. This currency dynamic likely contributed to the slower-than-expected reserve growth.
China maintains the world’s largest foreign exchange reserves, a critical buffer for economic stability and a key indicator watched closely by global investors. The modest increase suggests cautious capital movements and continued pressure on the yuan amid geopolitical and economic uncertainties.
While a weaker dollar typically boosts the value of non-dollar assets in reserve portfolios, the yuan’s depreciation may have offset some of those gains. Analysts remain focused on how China manages its reserves amid U.S.-China tensions, interest rate shifts, and market volatility.
The subdued reserve growth highlights the delicate balance China faces in maintaining currency stability and supporting economic policy amid shifting global conditions.
