Offshore yuan weakens on fresh trade concerns

The offshore yuan weakened to around 7.11 per dollar on Friday, as renewed trade concerns weighed on sentiment.

Reports indicate that the US has urged G7 nations to impose steep tariffs—ranging from 50% to 100%—on China and India over their continued purchases of Russian oil.

The move is part of Washington’s broader push to pressure Moscow into peace talks over the war in Ukraine. Moreover, the Trump administration has encouraged the EU to join the effort, but EU officials remain cautious, citing the risk of retaliation and ongoing trade negotiations with India.

The US is also seeking support from non-EU G7 members, including Japan, the UK, and Canada.

In a separate development, China criticized Mexico’s plan to impose tariffs of up to 50% on automobiles and other imports from countries without free trade agreements—many of them Chinese—calling the move discriminatory and influenced by external pressure. Despite Friday's loss, the currency is on track for weekly gains.