FX.co ★ Offshore Yuan Heads for Weekly Decline

The offshore yuan stabilized around 7.14 per dollar on Friday but was still set for significant weekly losses amid a strengthening US dollar. The dollar's continued rise stems from reduced expectations for aggressive Federal Reserve rate cuts, following a series of stronger-than-expected economic reports. The yuan faced additional pressure as President Donald Trump announced a new set of punitive tariffs. Starting October 1, a 100% tariff will be implemented on branded and patented pharmaceutical imports, with exceptions for companies that establish manufacturing operations within the United States. Moreover, there will be a 50% tariff on kitchen cabinets and bathroom vanities, along with a 25% tariff on imported trucks—all to take effect on the same date. However, sentiment was slightly buoyed by increasing optimism that a long-anticipated meeting between President Trump and Chinese President Xi Jinping is more likely to happen next year rather than this fall.