Overview
- The People’s Bank of China set the yuan’s daily midpoint at 7.0968 per dollar, its strongest in a year, helping lift the currency to roughly a two-week high near 7.12 offshore.
- The dollar index hovered near 98.23 and was on track for its largest weekly decline since late July, with Treasury yields near multi-week lows and gains in the euro and yen.
- Fed Governor Christopher Waller said he supports another rate cut at this month’s meeting, while Governor Stephen Miran urged a more aggressive cutting path into 2025.
- The Fed’s Beige Book pointed to rising layoffs and weaker spending among middle- and lower-income households, reinforcing market expectations for additional easing.
- Trade frictions sharpened as China rejected a White House call to roll back rare-earth curbs, while an extended U.S. government shutdown blocked key data and steered some investors toward hedges such as gold and cryptocurrencies.