Offshore Yuan Edges Higher

The offshore yuan edged higher to around 7.16 per dollar on Wednesday, hitting its highest level in over two weeks, as investors kept a close eye on developments in US-China trade relations. On Tuesday, US Treasury Secretary Scott Bessent announced that American and Chinese officials will meet in Stockholm next week for a third round of high-level talks, following his recent in-person meetings with Chinese Vice Premier He Lifeng in Geneva and London, aimed at negotiating a likely extension of the current pause in trade tensions beyond mid-August. The ongoing discussions aim to craft a provisional trade truce designed to ease tensions in the intensifying tariff standoff, which has already seen both nations impose steep, triple-digit duties and sparked fears of a severe disruption to bilateral trade. Externally, the yuan’s appreciation was also supported by a weaker greenback, after President Trump’s announcement of a trade agreement with Japan ahead of a looming tariff deadline.