Offshore yuan weakens past 6.71 as trade-truce uncertainty persists

  • Offshore yuan weakened past 6.71 per dollar on Thursday.
  • 70% of markets now price an October Fed rate hike, up from 55%.
  • Scott Bessent said the trade truce would continue through January 10.

The offshore yuan fell past 6.71 per dollar on Thursday to its weakest level in nearly three weeks, pressured by a firm U.S. dollar and uncertainty over the extension of the U.S.-China trade truce. Markets now price about a 70% chance of a Federal Reserve rate hike in October, up from 55% a day earlier, as expectations for further policy tightening support the greenback. Treasury Secretary Scott Bessent said the two countries had agreed to extend the truce by two months through January 10, but China has not publicly confirmed the expiration date. The extension is also shorter than the three-to-six-month continuation previously suggested by some U.S. officials. Expectations for a Trump-Xi summit remain subdued, with discussions expected to cover artificial intelligence, Iran, Taiwan and broader economic ties as both sides seek to preserve stability in bilateral relations.

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Offshore yuan weakens past 6.71 as trade-truce uncertainty persists - CoinPost Terminal