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Offshore yuan gets a lift as market awaits outcome of US-China trade talks
With both China and the US reporting ‘progress’ in their first trade talks, the offshore yuan had strengthened to 7.22 per US dollar by Monday
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With reports circulating of a breakthrough in China-US trade talks, the offshore yuan jumped in value against the US dollar even as details of the dialogue’s outcome remained undisclosed.
After settling at 7.24 per US dollar at close of business on Friday, China’s offshore currency had moved to 7.22 by Monday morning.
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At 3.01pm China time, following a joint statement from both sides in which they announced the removal of most tariffs imposed since April 2, the yuan broke the 7.2 threshold against the dollar, trading at 7.198.
China’s central bank has set the fixing rate for the onshore yuan at 7.2066 against the US dollar on Monday, compared to 7.2095 last Friday.
Optimism has risen in the market, buoyed by expectations of constructive and tangible results in the negotiations between the world’s two largest economies.
Both sides separately said the meetings yielded “substantial progress”, with a joint statement expected Monday.
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The two-day talks – attended by Vice-Premier He Lifeng, US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer in Geneva, Switzerland – were the first formal negotiations on trade since Trump ramped up tariff rates on Chinese goods after taking office in January.
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