Offshore Yuan Extends Decline
The offshore yuan weakened to around 6.70 per dollar on Wednesday, extending losses from the previous session as a firmer US dollar and caution ahead of the highly anticipated Trump-Xi summit weighed on sentiment. The greenback remained supported after hawkish remarks from Federal Reserve officials reinforced expectations of another interest-rate hike later this year. Pressure on the yuan was also driven by subdued optimism surrounding the summit after preliminary talks that held last Sunday failed to produce an agreement to extend the tariff truce due to expire in November. While expectations for a major breakthrough remain limited, the meeting is still expected to address a range of sensitive issues, including artificial intelligence, Iran, Taiwan, and bilateral trade relations. Chinese President Xi Jinping and First Lady Peng Liyuan are scheduled to be welcomed by President Trump on Wednesday evening, marking Xi's first visit to the United States since 2015.
70 per dollar on Wednesday, extending losses from the previous session as a firmer US dollar and caution ahead of the highly anticipated Trump-Xi summit weighed on sentiment. The greenback remained supported after hawkish remarks from Federal Reserve officials reinforced expectations of another interest-rate hike later this year. Pressure on the yuan was also driven by subdued optimism surrounding the summit after preliminary talks that held last Sunday failed to produce an agreement to extend the tariff truce due to expire in November.
While expectations for a major breakthrough remain limited, the meeting is still expected to address a range of sensitive issues, including artificial intelligence, Iran, Taiwan, and bilateral trade relations. Chinese President Xi Jinping and First Lady Peng Liyuan are scheduled to be welcomed by President Trump on Wednesday evening, marking Xi's first visit to the United States since 2015.