24.02.202602:02:49UTC+00Offshore Yuan Little Changed

The offshore yuan was little changed around 6.89 per USD on Tuesday, holding near a thirty-four-month high as investors returned from a week-long holiday in a cautious mood amid trade policy uncertainty. At the same time, the People’s Bank of China left key interest rates on hold for the ninth consecutive month, keeping the one-year and five-year loan prime rates at 3.0% and 3.5%, respectively. The move signaled that policymakers are in no hurry to launch broad-based monetary easing following recent targeted cuts for specific sectors, and underscored their efforts to strike a careful balance between supporting economic growth and preserving financial stability.

Sentiment in mainland markets was subdued as trading resumed after the break, weighed down by renewed trade tensions. Over the weekend, US President Donald Trump announced that a temporary 10% tariff on imports would be raised to 15%, the maximum permitted under current law. On Monday, he warned that countries seeking to roll back or withdraw from recent trade agreements with the United States could face even steeper duties.