Offshore Yuan Holds Ground Amid Trade Talks

The offshore yuan stabilized to around 7.18 per dollar on Tuesday, following two consecutive sessions of losses, as US-China trade negotiations entered their second day. The talks are drawing close market attention, with focus on whether recent signs of easing tensions will lead to a delay in planned tariffs. Trump officials also aim to shift discussions toward longer-term issues ahead of the August 12 deadline. The talks could pave the way for a possible Trump-Xi meeting later this year and help ease strains in sectors like semiconductors and rare earths. Elsewhere, markets found relief after the US and EU reached a weekend trade deal imposing a 15% tariff on EU goods—half the rate previously threatened. The agreement follows a similar pact with Japan. However, analysts say Trump’s recent trade momentum may have limited impact on China negotiations, with Beijing’s leverage, willingness to retaliate, and US pushback on Chinese investment seen as major obstacles.