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.
UCapital Asset Management LLP or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
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