2026.05.1501:18:11UTC+00Offshore Yuan Retreats, Still Eye Steady Week

The offshore yuan weakened to around 6.79 per dollar on Friday, pulling back from a more than three-year high in the previous session, as sentiment turned cautious amid Taiwan-related tensions during the Trump–Xi summit. President Xi warned that Taiwan could become a flashpoint for potential “clashes” between the world’s two largest economies, calling the situation “highly dangerous,” while reiterating Beijing’s opposition to US arms sales to Taiwan and to Taiwanese independence. Even so, the summit also produced signs of easing tensions. The White House said both sides discussed expanding Chinese purchases of US agricultural products and oil, and agreed that the Strait of Hormuz should remain open. US Trade Representative Jamieson Greer added that both sides appeared willing to extend the current trade truce if progress continues. As the meeting entered its second day, cautious optimism prevailed and traders positioned for a constructive outcome. For the week, the offshore yuan remained on track to finish broadly steady.