FX.co ★ Offshore Yuan Hovers Near 1-Year High

The offshore yuan was valued at approximately 7.09 per dollar on Wednesday, maintaining proximity to a one-year high as optimism remained elevated prior to the anticipated meeting between Presidents Donald Trump and Xi Jinping. Trump suggested that he anticipates reducing tariffs related to fentanyl on China before their meeting in South Korea later this week. This follows reports indicating that Washington might reduce the current 20% tariffs on fentanyl-related exports by half, contingent upon Beijing strengthening its controls over chemicals used in the production of fentanyl. Over the weekend, senior officials from both nations reached a preliminary understanding on crucial matters including export controls, fentanyl regulation, and shipping levies. A prospective agreement could potentially ease tariffs and adjust restrictions on Chinese exports, thus alleviating concerns for investors about the economic relations between the world’s two largest economies. Domestically, the focus now turns to the forthcoming PMI data releases, with official reports due this week and private surveys expected next week.