09.04.202513:09:37UTC+00Chinese Yuan Holds Rebound After Tariff Raise

The offshore yuan maintained its recovery, trading at 7.38 per dollar on Wednesday, aligning with a recent decline in the USD. This movement came as markets evaluated the intensifying trade conflict between China and the United States and its implications on the People’s Bank of China's strategy for managing its currency float. In response to the US's decision to raise tariffs to 104%, China declared its intention to increase tariffs on American goods to 84%. Additionally, Beijing added 12 companies to its export restriction list, aiming to exert pressure on the US economy, thereby restricting trade flows between the two largest global economies. In reaction, the People's Bank of China implemented a series of weaker yuan fixes to enhance the competitiveness of Chinese exports, pushing the currency to a low of 7.43 per USD, its most depressed level since the current monetary regime was established in 2010. Meanwhile, Premier Li Qiang reiterated that China’s macroeconomic policies are crafted to address uncertainties, expressing confidence in achieving continued growth throughout the year.