Offshore Yuan Gains Seen Allaying China’s Currency Woes — for Now

Last week, the onshore yuan fell to the lowest level since 2008 while the offshore unit depreciated to the weakest in data going back to 2010

(Bloomberg) — The offshore yuan’s rally is set to boost the onshore currency once trading resumes after the Golden Week holidays in China, taking pressure off the central bank to defend the currency.

The offshore yuan is poised for its biggest weekly gain since May on the back of the dollar’s retreat as traders bet the Federal Reserve may ease off on its policy tightening. It portends a strong opening for the currency traded in Shanghai after a seventh straight month of losses.