FX.co ★ Offshore Yuan Holds Losses

The offshore yuan maintained its recent decline, trading around 7.35 per dollar and nearing a two-month low, impacted by intensifying trade tensions between the United States and China. On Monday, President Trump announced an additional 50% in tariffs on Chinese goods, scheduled to take effect on Wednesday, in retaliation to Beijing's countermeasures announced the previous Friday. In an assertive statement, China declared its intention to further retaliate should Washington escalate matters, emphasizing its readiness to defend its interests at all costs. Last week, China announced a 34% tariff on all US imports, set to commence on Thursday, as part of its counter-response to Washington's tariff increases. In light of these growing tensions, Chinese policy makers are hastening the implementation of stimulus measures aimed at boosting consumption and stabilizing markets, with fiscal support anticipated to cushion the economy.