China's yuan strengthened after faster third-quarter growth data on Oct. 19, though falling investment and modest retail-sales gains highlighted the economy's uneven domestic demand.
Reuters reported that the onshore yuan traded at 6.6826 per dollar at 10:15 p.m. ET Oct. 18 (02:15 UTC Oct. 19), its strongest level since July 2022. Reuters also quoted the offshore yuan at 6.6818 per dollar during Asian trading but gave no exact time for that rate.
A separate EconoTimes snapshot of offshore trading put the dollar at 6.67992 yuan at 1:53 a.m. ET (05:53 UTC) on Oct. 19. The two timed quotes came from different yuan markets and were recorded three hours and 38 minutes apart.
The National Bureau of Statistics of China (NBS) said gross domestic product grew 4.5% year over year in the third quarter, following 4.3% growth in the second. Output rose 1.2% from the previous quarter, compared with 0.9% in April through June.
Growth for January through September was 4.6% from a year earlier, within the government's 4.5% to 5% target range for 2026. The target covers the full year; the nine-month reading is an interim measure.
Consumer-goods retail sales increased 1.1% year over year in September, compared with 0.4% in August. Fixed-asset investment excluding rural households fell 7.2% year over year from January through September. It declined 4.2% over that period when real estate development was excluded. The NBS said weak domestic demand remained a problem.
The bureau also reported that goods exports rose 16.4% from a year earlier in the first nine months, while investment declined over the same period.
In a Sept. 30 analysis, Brown Brothers Harriman Vice President and Global Head of Markets Strategy Elias Haddad linked his view of a continuing dollar decline against the offshore yuan to China's economic rebalancing and the potential for wider international use of the currency. Haddad also said a stronger yuan could make imports cheaper for Chinese consumers.
The NBS's next scheduled purchasing managers' index release is set for 9:30 p.m. ET Oct. 30 (01:30 UTC Oct. 31). Its calendar says the date is preliminary and may change.
