The offshore yuan weakened to around 6.70 per dollar on Wednesday, extending declines from the previous session as a stronger US dollar and caution ahead of the closely watched Trump–Xi summit weighed on sentiment. The greenback held firm after hawkish comments from Federal Reserve officials reinforced expectations of another interest-rate hike later this year.
Additional pressure on the yuan stemmed from muted optimism over the summit’s outcome, after preliminary talks on Sunday failed to yield an agreement to extend the tariff truce set to expire in November. Although expectations for a major breakthrough remain low, the meeting is still expected to cover a range of sensitive topics, including artificial intelligence, Iran, Taiwan, and bilateral trade relations.
Chinese President Xi Jinping and First Lady Peng Liyuan are scheduled to be received by President Trump on Wednesday evening, marking Xi’s first visit to the United States since 2015.
