FX.co ★ Offshore Yuan Edges Higher

The offshore yuan climbed to approximately 7.16 per dollar on Wednesday, marking its strongest position in over two weeks as investors closely monitored the evolving US-China trade relations. On Tuesday, US Treasury Secretary Scott Bessent revealed that top officials from the United States and China are scheduled to convene in Stockholm next week for a third round of high-level negotiations. This follows Bessent's recent meetings in person with Chinese Vice Premier He Lifeng in Geneva and London. The objective of these talks is to discuss a possible extension of the current halt on trade tensions, potentially extending beyond mid-August. The ongoing dialogue aims to establish a temporary trade truce, intended to de-escalate tensions amidst the intensifying tariff conflict, which has resulted in significant duties from both nations and has raised concerns about substantial disruption to bilateral trade. Moreover, the yuan's rise was aided externally by a weakening US dollar, which followed President Trump's announcement of a trade agreement with Japan ahead of the impending tariff deadline.