China's yuan slips against dollar
SHANGHAI: China's yuan slipped against the dollar on Friday, as investors cautiously looked towards key tariff talks with the United States over the weekend for signs of a de-escalation of the trade dispute between the world's two largest economies.
Officials from Beijing and Washington prepare to meet in Switzerland on Saturday for negotiations that markets hope could be the first step toward resolving the trade war disrupting the global economy. 'The talk is likely to centre on de-escalation rather than a big trade deal, with Bessent stating that current tariff rates aren't sustainable and are equivalent to a trade embargo,' said Ju Wang, head of Greater China FX & rates strategy at BNP Paribas, referring to US Treasury Secretary Scott Bessent.
'The key question for the market is whether tariffs will eventually be reduced to 50–60% or 20–30%. In our base case, where US tariffs on China are scaled back to 50%, the yuan is likely to remain around the current level.'
As of 0330 GMT, the onshore yuan was 0.06% lower at 7.2492 per dollar, while its offshore counterpart was down 0.08% at 7.2492.
Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate, around which the yuan is allowed to trade in a 2% band, at 7.2095 per dollar, its weakest since April 24.
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