Offshore Yuan Trades Sideways

The offshore yuan hovered around 7.17 per dollar on Tuesday, trading in a narrow band, as markets continued to monitor fresh cues on Sino-US trade developments. China’s commerce minister said last week that Beijing aims to stabilize trade ties with Washington, citing recent EU talks as evidence that a tariff war is unnecessary and urging the US to act responsibly. Analysts noted that as August nears, markets are likely to shift focus toward evolving tariff expectations and upcoming US Fed Reserve appointments. On the policy front, the PBOC recently left key lending rates unchanged, a steady policy stance that has limited yuan volatility. Separately, China’s Conflux Network launched a new offshore yuan-based stablecoin, a move seen as bolstering long-term CNH liquidity and advancing Beijing’s efforts to internationalize the yuan. Markets now await the upcoming Politburo meeting, expecting a supportive policy tone but limited scope for major stimulus following stronger Q2 GDP growth.