FX.co ★ Offshore Yuan Strengthens Amid Dollar Weakness

The offshore yuan rose to approximately 7.25 per dollar on Friday, continuing its upward trend from the day before. This appreciation was fueled by a weakening US dollar amid intensifying concerns that President Donald Trump's broad tariffs might drive the global economy, especially in the United States, towards a recession. On Wednesday, Trump announced a 10% baseline tariff on all imports, with other major economies facing even steeper tariffs, including a 54% levy on Chinese imports and 20% on those from the European Union. In response, China stated it would soon resume negotiations with the EU to enhance cooperation between Chinese and European companies, with a particular focus on the electric vehicle sector. Earlier in the week, South Korea, China, and Japan reached a consensus to pursue a free trade agreement aimed at bolstering regional trade.