FX.co ★ Offshore Yuan Remains Under Pressure

The offshore yuan weakened further, surpassing the 7.24 per dollar mark on Friday, marking its fourth consecutive session of depreciation, largely due to the strengthening of the US dollar. The renewed vigor of the dollar was fueled by heightened optimism surrounding a potential trade agreement between the United States and the United Kingdom, which is notably the first such accord since the US imposed significant tariffs last month. Concurrently, the yuan faced additional pressure due to persistent uncertainty in the US-China trade negotiations, notwithstanding President Trump's hints at potentially easing tariffs. In China, the People's Bank injected 158.6 billion yuan into the banking system via seven-day reverse repos at a lowered rate of 1.4%, signaling ongoing efforts to ease monetary policy in support of economic growth amidst escalating external challenges. Investors are now closely monitoring forthcoming domestic economic indicators, including inflation and trade statistics, as anticipation builds regarding potential US tariffs on Chinese products.