FX.co ★ Offshore Yuan Steady as US-China Talks End

The offshore yuan stabilized around 7.17 per dollar on Wednesday, following the end of two days of 'constructive' trade discussions between the US and China held in Sweden. In these talks, both parties agreed to work towards extending the 90-day tariff truce, which is currently set to conclude on August 12. This move aims to alleviate tensions in the ongoing trade conflict between the world's two largest economies. Despite this positive development, US Treasury Secretary Scott Bessent highlighted that President Trump maintains ultimate control over all trade agreements, including decisions about extending the truce. However, Bessent minimized concerns that Trump might resist the extension and cautioned that failing to reach a deal by the deadline would result in US tariffs on Chinese goods returning to the triple-digit rates experienced in April. Meanwhile, in China, investors are focusing on the upcoming PMI data, scheduled for release tomorrow, to gain insights into the country’s economic prospects amidst rising domestic challenges and global trade instability.