FX.co ★ Offshore Yuan Rallies to 6-Month High

The offshore yuan appreciated to approximately 7.20 per dollar, reaching a six-month peak, buoyed by the depreciation of the US dollar, even during a national holiday in mainland China. This movement occurred amid cautious market sentiment, as persistent trade uncertainties lingered, with investors awaiting tangible evidence of easing tensions between China and the US, rather than mere verbal indications from officials. Furthermore, speculation that the Trump administration exerted pressure on Asian nations to appreciate their currencies against the dollar provided additional support for the yuan. Although China’s Ministry of Commerce signaled willingness to consider Washington’s proposal for discussions on Trump's imposing 145% tariffs, substantial differences remain between both parties. In a Sunday interview, President Trump reaffirmed his belief that China is inclined towards reaching an agreement but offered no concrete details, emphasizing that any deal must be “fair.” The previous week, Beijing stressed that the US should eliminate all unilateral tariffs as a gesture of goodwill.