The offshore yuan traded around 7.09 per dollar on Wednesday, hovering near a one-year high as optimism persisted ahead of the highly anticipated meeting between Presidents Donald Trump and Xi Jinping. Trump indicated that he expects to reduce fentanyl-related tariffs on China ahead of the meeting in South Korea later this week, following reports that the Washington may slash the existing 20% tariffs on fentanyl-linked exports by half in exchange for Beijing tightening controls on chemicals used in fentanyl production. Over the weekend, top officials from both countries reached a preliminary agreement on critical issues, including export controls, fentanyl regulation, and shipping levies. A potential deal could ease tariffs and modify Chinese export restrictions, alleviating investor concerns regarding the world’s two largest economies. Domestically, investor attention now shifts to upcoming PMI releases, with official data scheduled for this week and private surveys set for next week.
