The offshore yuan weakened to around 7 per dollar on Monday, easing from a fifteen-month high, as investors turned cautious amid the central bank’s efforts to temper rapid one-way moves. The People’s Bank of China set a slightly softer-than-expected midpoint, signaling its intent to rein in excess yuan strength, while state-run media cautioned against betting on unilateral appreciation. Analysts also noted that seasonal foreign exchange flows and rising demand have supported the yuan’s broad uptrend, but appreciation pressure is expected to ease once year-end settlements conclude. Despite short-term caution, global investors continue to expect the yuan’s momentum to persist into 2026, with the key 7 level likely to be tested again, even as authorities reaffirm their commitment to maintaining currency stability. The yuan has gained more than 4.1% against the dollar so far this year and is on track to log the biggest annual rise since 2020.