Yuan steady as traders await GDP data

SHANGHAI: The yuan was mostly steady against the dollar on Tuesday, as traders await Wednesday’s China GDP data while they also keep a wary eye on whether Chinese developer Country Garden will default on its offshore debt as a repayment deadline looms.

Beijing’s persistent stabilisation efforts have managed to slow the yuan’s weakening trend, and the local currency also got some support during the day from a retreat in the dollar overnight on reduced bets of higher rates.

The spot yuan was changing hands at 7.3126 at midday, slightly weaker than the previous late session close. Prior to market open, the People’s central bank kept the midpoint steady at 7.1796, maintaining a strong fixing bias.

Confidence in the yuan remains fragile as the economy struggles to recover beyond a brief post-COVID bounce.