FX.co ★ Offshore Yuan Weakens

On Wednesday, the offshore yuan weakened to approximately 7.11 per dollar, halting its two-day winning streak. This shift came as the US dollar gained strength following cautious statements from Federal Reserve Chair Jerome Powell. Powell underscored the necessity for the central bank to cautiously navigate the ongoing balance between persistent inflation concerns and a slowing labor market, describing the situation as particularly "challenging." His remarks, similar to those made the previous week, underscored the ongoing complexity for the Fed in determining its future policy directions. In China, People's Bank of China Governor Pan Gongsheng reaffirmed that the nation's monetary policy will remain reliant on economic data and focused on supporting economic recovery. He committed to utilizing a wide range of tools to ensure sufficient liquidity and lower financing costs. Meanwhile, global markets are closely observing the developments in Sino-US trade relations, with Presidents Trump and Xi poised for a significant meeting in South Korea in the coming six weeks.