FX.co ★ Offshore Yuan Falls Despite Upbeat PMI Data

On Tuesday, the offshore yuan declined to approximately 7.27 per dollar, as impending reciprocal tariffs from President Donald Trump weighed heavily, even amid encouraging manufacturing PMI data. Investor anxiety persists regarding the potential extent of these tariffs, following Trump's indication that they might apply extensively to all nations, coupled with reports highlighting his efforts to persuade advisors toward a more assertive trade policy. In tandem, South Korea, China, and Japan have reached a consensus to work on a free trade agreement, seeking to enhance regional trade in the face of Trump's anticipated tariff declaration. Additionally, a private survey indicated that China's manufacturing output climbed to a four-month peak in March 2025, surpassing market forecasts. Furthermore, official statistics released on Monday illustrated that China’s composite PMI ascended to a three-month peak in March, with both the services and manufacturing sectors demonstrating robust growth.