The offshore yuan held its recent gains to around 7.16 per dollar on Tuesday, hovering near its highest level since early November 2024, supported by improved sentiment after factory activity unexpectedly returned to growth. A private survey showed that China’s Manufacturing PMI rose to 50.4 in June from 48.3, and beating forecasts of 49, supported by Beijing’s efforts to stabilize growth amid higher US tariffs. The reading contrasted with the official PMI released Monday, which signaled a third straight month of contraction, though with modest improvement, highlighting resilience among export-driven firms despite trade headwinds. Meanwhile, the US dollar remained under pressure amid growing bets on Fed rate cuts and trade uncertainty, offering further support to the yuan. Looking ahead, anticipation is building around notable actions expected at key political meetings in China, particularly the upcoming July Politburo session, keeping markets attentive to further yuan interventions.