Yuan weakens amid US dollar strength and tariff concerns

The offshore yuan fell to around 7.28 per dollar, reversing earlier gains and ending two days of upward movement as the US dollar strengthened.

Yuan weakens amid US dollar strength and tariff concerns

This decline followed reports that Chinese officials are considering allowing the currency to weaken in response to concerns over potential higher tariffs under a second Trump presidency. Proposed tariffs could include a universal 10% import tax and a 60% tariff on Chinese goods entering the U.S. By devaluing the yuan, China could boost export competitiveness by making its goods cheaper globally and stimulating domestic monetary conditions.

Yuan weakens as China shifts from stability, investors eye economic conference

However, this would shift from Beijing’s longstanding commitment to currency stability. Meanwhile, investors closely monitor China’s annual Central Economic Work Conference, where the government reviews the economy and sets priorities for the year ahead.