The offshore yuan strengthened to around 7.10 per dollar on Tuesday, approaching its highest level in six weeks, supported by optimism over a potential US–China trade deal. Over the weekend, top economic officials from both countries finalized a framework for President Trump and Chinese leader Xi Jinping to decide on during their meeting in South Korea on Thursday. Trump expressed confidence an agreement would be reached, highlighting recent trade and critical minerals deals with Southeast Asian nations. A deal could ease tariffs and Chinese export controls, calming investor concerns over the world’s two largest economies. The yuan was also lifted by the PBOC, which set the official midpoint at 7.0881 per dollar, above market expectations, signaling continued efforts to guide the currency higher. Markets now turn to upcoming PMI releases, with official data due this week and private surveys next week.
