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28.10.202503:10:47UTC+00Offshore Yuan Nears Six-Week High

The offshore yuan appreciated to nearly 7.10 per dollar on Tuesday, nearing its highest point in six weeks. This movement is driven by optimism surrounding a potential trade agreement between the United States and China. Over the weekend, high-ranking economic officials from both nations finalized a framework for an imminent meeting between President Trump and Chinese leader Xi Jinping in South Korea on Thursday. President Trump has shown confidence in reaching a deal, noting recent trade and critical minerals agreements with Southeast Asian countries. Such a deal could alleviate tariffs and Chinese export restrictions, alleviating investor anxieties regarding the economic relationship between the world's two largest economies. Additionally, the yuan's position was strengthened by the People's Bank of China (PBOC), which set the official midpoint at 7.0881 per dollar. This exceeded market expectations and indicated ongoing efforts to appreciate the currency. Attention now shifts to the forthcoming Purchasing Managers' Index (PMI) data, with official figures slated for release this week, followed by private sector surveys next week.

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