The offshore Chinese yuan weakened past 7.23 per USD after data showed slowing Chinese services activity in June, raising concerns about the country’s post-pandemic recovery. The currency was under pressure after the People’s Bank of China (PBOC) cut key short-term interest rates for the first time in ten months. The PBOC has indicated its intention to maintain currency stability and guard against large exchange rate fluctuations, hinting at potential policy measures to prevent sharp currency depreciation.