FX.co ★ Offshore Yuan Slides on Dollar Strength

On Thursday, the offshore yuan fell beyond 7.20 per dollar, continuing its decline for the third consecutive session. This movement was driven by a strengthening US dollar following a pivotal court ruling regarding President Donald Trump's tariff policies. The US Court of International Trade in Manhattan determined that Trump exceeded his authority with the "Liberation Day" import tariffs, deciding to annul and permanently bar them. Concurrently, the US increased its export restrictions, which effectively prevented some American companies from selling critical technologies to China. In reaction, Liu Pengyu, spokesperson for the Chinese Embassy in the US, expressed strong opposition, stating, "China firmly opposes the US’s expansion of the national security concept, abuse of export controls, and unjust suppression of China.” This development occurred amidst a delicate pause in the protracted US-China trade war, during which both countries have agreed on reducing certain tariffs.