The offshore yuan strengthened to around 7.30 per dollar as investors weighed the potential impact of growing global trade tensions.
Yuan gains strength against US dollar
The White House signaled that President Trump could announce new tariffs as early as Thursday, which would add to the existing 10% levy on Chinese goods and 25% duties on steel and aluminum imports. However, in a recent interview, Trump revealed that he had spoken with Chinese President Xi Jinping, emphasizing their "very good personal relationship," which could help ease or delay the imposition of additional trade tariffs. Meanwhile, optimism grew over a potential peace deal between Ukraine and Russia, following phone talks between US President Trump, Russian President Putin, and Ukrainian President Zelenskiy. The prospect of a resolution to the conflict helped ease some global uncertainties.
Chinese policies effects
In China, authorities are considering a 50 billion yuan aid package to support China Vanke, one of the country’s largest property developers, amid struggles in the property sector. The proposed plan, which aims to stabilize the troubled real estate market, has boosted investor confidence in property stocks. However, lingering concerns about the long-term sustainability of debt in the sector remain a challenge. With the broader economic outlook tied to these developments, investors are closely monitoring the evolving trade and economic landscape for further signals of stability or risk.
