The offshore yuan stabilized around 6.90 per dollar after two sessions of declines, as market sentiment improved following confirmation of a high-level meeting between Presidents Donald Trump and Xi Jinping. Trump is scheduled to visit China from May 14–15, marking his first trip to the country in eight years. The visit, which had been closely watched by investors, was previously postponed due to the Iran crisis. Trump also said he would host Xi for a reciprocal visit to Washington later this year.
The yuan’s relative stability also underscores its insulation from mixed signals surrounding efforts to ease tensions in the Middle East. Trump has sought backing from major oil importers, including China, to counter Tehran’s attempts to threaten shipping through the Strait of Hormuz. Thus far, however, those overtures have yielded little, as Beijing appears to see limited concrete benefit in becoming directly involved. Chinese and other non-hostile vessels continue to transit the strait without major disruption, while China has strengthened its strategic petroleum reserves and made substantial investments in renewable energy.
