Offshore Yuan Firms Over 4-Week High

The offshore yuan held its recent gains to around 7.15 per dollar on Tuesday, trading close to its highest level in over four weeks, supported by weakness in the US dollar. The greenback came under pressure after President Donald Trump announced the dismissal of Fed Governor Lisa Cook, fueling concerns over central bank independence and reinforcing expectations of earlier rate cuts. Earlier this week, Fed Chair Powell also struck a dovish tone at the Jackson Hole Symposium, signalling a September rate cut. On the global trade front, Trump warned China must supply the US with rare-earth magnets or face tariffs of up to 200%, while also threatening levies on countries maintaining digital taxes, a potential downside for the yuan. Meanwhile, Beijing, which tightened export controls on rare earths in April, has grown increasingly sensitive over its dominance in the sector.