FX.co ★ Offshore Yuan Weakens

The offshore yuan declined to approximately 7.15 against the US dollar on Friday, pulling back from a peak reached in over eight months during the previous session. This shift occurred as investors awaited the outcome of next week's crucial US-China trade discussions with caution. US Treasury Secretary Scott Bessent confirmed the upcoming talks and indicated that the agenda might include the issue concerning TikTok. He cautioned that ByteDance, the owner of TikTok, could face a ban in the US if Beijing does not approve a divestment deal. In parallel, President Trump suggested he might visit China "in the not-too-distant future," potentially as an effort to ease tensions in the trade relations between the two largest global economies. Investors are also eyeing China's industrial profits report, due over the weekend, for insights into how businesses are managing the challenges posed by tariffs. Despite Friday's dip, the yuan is set to record weekly gains.