The offshore yuan firmed to around 6.89 per USD on Monday, approaching a thirty-four-month high, as the US dollar weakened amid renewed trade policy uncertainty. The shift followed a US Supreme Court ruling that struck down President Donald Trump’s broad tariff measures, after which he moved to reinstate a 10% levy and then raise it to 15%—a step that could significantly alter trade terms for major partners.
In response, senior US officials have called on international partners to uphold prior commitments, while Trump is planning a visit to Beijing aimed at ensuring continuity under the one-year trade truce. China, for its part, announced it is undertaking a “full assessment” of the Supreme Court’s tariff decision and urged Washington to roll back related unilateral measures.
Beijing also indicated it is closely watching any alternative US actions, such as new trade investigations, and reiterated its resolve to protect its economic interests. Looking ahead, the yuan may experience heightened volatility when mainland markets reopen on Tuesday after a week-long holiday, with investors also awaiting the People’s Bank of China’s upcoming policy decision.
