Offshore Yuan Steady After Trade Data

The offshore yuan steadied around 7.18 per dollar on Thursday, as investors digested the latest trade figures. China’s trade surplus expanded to USD 98.24 billion in July 2025, from USD 85.27 billion a year earlier. However, it was the smallest surplus since April and fell short of the forecasted USD 105 billion. Nevertheless, export growth reached a three-month high of 7.2% year-on-year, well above market expectations of a 5.4% increase, driven largely by a temporary easing of tariff pressures ahead of the looming August deadline. At the same time, imports unexpectedly surged to a one-year high, rising 4.1% annually and defying forecasts of a 1.0% decline. Regarding the latest trade truce development, President Donald Trump said the US and China are “very close” to extending the agreement set to expire on August 12. He also expressed a willingness to meet with Chinese President Xi Jinping by the end of the year if a formal agreement is reached between the two economic powers.