The offshore yuan weakened to around 7.16 per dollar on Friday, retreating from a near eight-month high reached in the previous session, as investors were left disappointed by the lack of details in the latest US-China deal. President Donald Trump announced on Wednesday that Washington had reached an agreement with China to expedite rare earth shipments to the US, as part of broader efforts to ease trade tensions between the world’s two largest economies.
However, investors were left wanting more clarity, as no further details of the agreement were provided. Adding to the pressure on the yuan, data showed that China’s industrial profits fell 9.1% year-on-year in May — the sharpest decline in seven months — highlighting persistent headwinds facing the economy. Meanwhile, investors are closely watching the outcome of the concluding Politburo meeting for potential stimulus measures. Despite Friday’s losses, the currency remains on track to notch its fourth straight weekly gain.
