PBOC intervention in Hong Kong kept the offshore renminbi largely stable against the dollar this week even as US yields jumped. This lowers the chance of a large adjustment to the daily fixing rate when the onshore market reopens from its 8-day holiday on Monday, which would risk destabilising market expectations.
Meanwhile, data for the first 7 days of the holiday suggest that, after stalling earlier in the summer, domestic tourism spending is picking up again. This comes amid wider signs of an improvement in consumer activity lately.
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