FX.co ★ Offshore Yuan Rebounds Amid Dollar Weakness

The offshore yuan experienced an uptick towards 7.38 per dollar on Wednesday, recovering after three consecutive sessions of losses, driven by a weakening US dollar. This decline in the US currency was largely triggered by mounting concerns over the potential economic repercussions of President Donald Trump's stringent tariff measures. The US has declared that tariffs of 104% on Chinese imports will be implemented just past midnight, heightening fears of decelerated economic growth and escalating inflation. This announcement was made even as the Trump administration agreed to commence discussions with other trade partners, including Japan. In response, China has vowed to 'fight to the end,' with its Ministry of Commerce accusing the US of engaging in 'blackmail.' As tensions intensify, Chinese policymakers have convened high-level meetings to expedite stimulus measures aimed at boosting consumption and stabilizing markets, with fiscal support anticipated to act as a buffer for the economy.