FX.co ★ Offshore Yuan Rises on Weaker Dollar

The offshore yuan strengthened to approximately 7.29 against the dollar, buoyed by a diminishing U.S. dollar amid escalating concerns regarding U.S.-China trade relations. Although President Trump has stated that progress has been made on trade talks with China and other nations, Beijing has once again refuted being in negotiations with Washington, maintaining a firm stance on tariffs. U.S. officials, including Treasury Secretary Scott Bessent, assert that the U.S. holds the advantage in the ongoing trade war with China. Amid these developments, Beijing has expressed confidence in achieving its annual growth target of approximately 5% but has opted not to introduce additional stimulus measures during a press conference held on Monday. Earlier this month, the People's Bank of China (PBOC) relaxed its grip on the yuan, allowing it to depreciate past 7.2, yet maintained guidance that was stronger than anticipated, indicating a strategy to balance stability and flexibility in response to tariff pressures. Traders are also closely monitoring China's April manufacturing data for any indications of the impact from U.S. tariffs on Chinese exports.