The offshore yuan climbed to around 7.09 per dollar on Tuesday, reaching its highest level since early October last year, boosted by signs of improving US-China relations. US President Donald Trump and Chinese leader Xi Jinping held a phone call earlier in the week, with both governments stressing progress on trade and tariff commitments reached during last month’s talks in South Korea. The two leaders also agreed to resume high-level visits next year, reinforcing expectations that tensions are easing and economic cooperation is back on a more stable track. Additionally, the People’s Bank of China continued to guide the yuan higher, setting the daily midpoint at 7.0826, stronger than both Monday’s 7.0847 fix and market estimates. The central bank also kept rates unchanged for the sixth straight month in November, signaling less urgency for further stimulus. Attention now turns to December’s Politburo meeting and Central Economic Work Conference for hints on next year’s policy.
