Offshore yuan heads for weekly decline

The offshore yuan steadied around 7.14 per dollar on Friday but remained on course for substantial weekly losses amid a firming US dollar.

The greenback continued to gain strength as traders dialed back expectations for aggressive Fed rate cuts, following a string of stronger-than-anticipated economic data.

Weighing further on the yuan, President Donald Trump unveiled a new round of punitive tariffs. Beginning October 1, a 100% tariff will be imposed on branded and patented pharmaceutical imports, with exemptions for companies that establish manufacturing facilities within the US.

Furthermore, kitchen cabinets and bathroom vanities will face a 50% tariff, while a 25% tariff will apply to imported trucks—all taking effect on the same day.

Nonetheless, sentiment received a modest lift from growing optimism that a long-awaited meeting between President Trump and Chinese President Xi Jinping is now more likely to take place next year rather than this fall.