FX.co ★ Offshore Yuan Set for Weekly Decline

The offshore yuan dipped to approximately 7.18 per dollar on Friday, setting the stage for a weekly decline as investor caution persisted amid stagnant US-China trade discussions. Treasury Secretary Scott Bessent remarked on Thursday that negotiations with China are "somewhat stalled" and may necessitate direct intervention from President Trump and President Xi Jinping to progress. Despite a temporary truce being forged two weeks prior, the momentum has since waned. Investor sentiment was further dampened by Washington's move to tighten export restrictions, essentially prohibiting certain US companies from selling critical technologies to China. Additionally, investor concerns were heightened as the US appeals court reinstated President Trump’s reciprocal tariffs, overturning a previous ruling that had declared them unlawful. Domestically, investors are eagerly awaiting the release of PMI data over the weekend, which is anticipated to provide insight into the economic health of the world's second-largest economy.