13.03.202604:19:58UTC+00Offshore Yuan Extends Fall, Still Eyes Weekly Gain

The offshore yuan weakened to around 6.88 per dollar on Friday, extending its losses from the previous session as investors reacted to new U.S. trade investigations targeting several economies, including China. The Trump administration has launched a fresh probe under Section 301(b) to determine whether certain policies in key economies—particularly those related to forced labor—are “unreasonable or discriminatory” and detrimental to U.S. commerce. This move follows a separate Section 301 investigation initiated on Wednesday, a mechanism that authorizes the president to impose tariffs on countries deemed to be engaging in unfair trade practices. These latest actions are adding strain to U.S.–China relations and jeopardizing a fragile trade truce ahead of a high-stakes summit in Beijing. Externally, the yuan also faced headwinds from a stronger U.S. dollar, supported by safe-haven demand amid escalating tensions in the Middle East. Even so, the offshore yuan remains on course for a weekly gain.