FX.co ★ Offshore Yuan Treads Narrow Range

The offshore yuan remained steady around 7.12 per dollar on Tuesday as investors considered the latest developments in US-China trade negotiations. President Trump indicated that talks in Spain are "progressing well," with a framework deal regarding TikTok's divestment confirmed ahead of his planned discussion with Chinese President Xi Jinping this Friday. However, China criticized a US proposal concerning significant tariffs on Chinese goods associated with Russian oil, labeling it as "unilateral bullying" while emphasizing its preference for dialogue. Meanwhile, Tencent Holdings announced its first offshore yuan bond sale since 2021. The issuance includes 5-, 10-, and 30-year notes intended to enhance CNH liquidity and attract more international investors, providing additional support for the yuan. In other financial news, markets remained cautious in anticipation of the upcoming Federal Reserve meeting, where the widely expected September US rate cut could further bolster the yuan.