On Friday, the offshore yuan weakened to approximately 7.13 per dollar after three days of stability, as the US dollar gained strength. This movement occurred amidst investors largely dismissing concerns about a potential US government shutdown. Historical data suggests that similar past events have had minimal economic impact, which contributed to market confidence.
Regarding US-China trade relations, President Donald Trump has recently expressed intentions to encourage Chinese President Xi Jinping to increase US soybean imports during their upcoming meeting. This comes as American farmers continue to face challenges stemming from ongoing trade disputes. Trump announced a planned meeting with Xi at the APEC summit, scheduled to occur in South Korea at the end of October, and noted plans for a subsequent visit to China next year. Despite Friday’s dip, the index is expected to end the week relatively unchanged.
