Offshore Yuan Steady as US-China Talks End

The offshore yuan steadied around 7.17 per dollar on Wednesday, following the conclusion of two days of ‘constructive’ US-China trade negotiations in Sweden. During the talks, both sides agreed to pursue an extension of the 90-day tariff truce, set to expire on August 12, in an effort to ease tensions in the ongoing trade war between the world’s two largest economies. Despite this progress, US Treasury Secretary Scott Bessent emphasized that President Trump retains final authority over all trade agreements, including any decision regarding the truce. Nevertheless, Bessent downplayed concerns that Trump would oppose an extension. He warned, however, that without a deal by the deadline, US tariffs on Chinese goods would revert to the triple-digit levels seen in April. In China, investors are turning their attention to upcoming PMI data, due tomorrow, for insights into the country’s economic outlook amid mounting domestic challenges and global trade uncertainty.