The offshore yuan strengthened to around 6.89 per USD on Monday, moving toward thirty-four month highs, as the US dollar weakened amid renewed trade policy concerns. The US Supreme Court struck down President Donald Trump’s sweeping tariffs, prompting him to first reinstate a 10% rate before lifting it to 15%, a move that could reshape trade terms for key partners. Senior US officials now urge partners to honor previous commitments, while Trump plans a visit to Beijing to ensure continuity under the one-year trade truce. Meanwhile, China said it is conducting a “full assessment” of the court’s tariff decision and urged Washington to remove related unilateral measures. Beijing also signaled it is closely monitoring alternative US actions, including trade investigations, and pledged to safeguard its economic interests. The yuan is likely to see volatility when mainland markets reopen on Tuesday after a week-long holiday, while investors await the PBOC’s upcoming policy decision.
