Offshore Yuan Edges Lower
The offshore yuan experienced a slight decline to approximately 7.18 per dollar on Tuesday, though it remained near its highest point since early November 2024. This stability comes as investors maintain a keen eye on developing trade situations. Recently, China and the European Union have ramped up cooperation in the face of increasing US tariffs. Trade representatives from both entities are expected to reconvene early next month during the WTO meeting in Paris. In the meantime, investors are evaluating President Trump's shift to postpone imposing 50% tariffs on EU imports until July 9. The yuan faced some downward pressure as the People's Bank of China adjusted the daily midpoint reference rate slightly higher to 7.1876, reflecting an acceptance of a slightly weaker yuan. Conversely, data indicating accelerated industrial profits through April, attributed to Beijing's supportive policies, provided a slight boost to the currency. Traders are now awaiting this week's PMI data, which could offer additional insights into the state of China's economy.
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