FX.co ★ Offshore Yuan Falls

The offshore yuan dropped to approximately 7.19 against the dollar on Wednesday, as investors responded with caution to the recent developments regarding the US-China trade negotiation. President Donald Trump indicated that Washington and Beijing are "very close" to extending the current trade truce, which is scheduled to end on August 12. This agreement has so far played a crucial role in preventing further tariff escalations and mitigating constraints on key export sectors. Additionally, President Trump expressed his willingness to meet Chinese President Xi Jinping by the year's end if a formal agreement is achieved between the two major economies. This announcement comes in the wake of the third series of discussions between senior officials from both nations, held in Stockholm last week, where both parties reportedly concurred on a 90-day extension of the truce. In parallel, Chinese investors are eagerly awaiting the release of trade data tomorrow, aiming to assess the influence of the ongoing trade negotiations on the domestic economic landscape.