SHANGHAI: The yuan advanced to a near one-year high against the dollar on Thursday as US and Chinese leaders met in South Korea with investors hoping they would reach a trade truce.
The meeting was the first between the leaders since US President Donald Trump returned to office in January. He has repeatedly expressed optimism about reaching an agreement with his Chinese counterpart Xi Jinping during the summit, taking place on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit.
The currency “could be part of the trade talks or at least a way to relieve some pressure in terms of the potential US concern when it comes to trade discussions,” said Jeremy Zook, lead analyst for China at Fitch Ratings.
The onshore yuan strengthened to a high of 7.0955 per dollar, the loftiest level since November 4, 2024, before fetching 7.0973 as of 0200 GMT. Its offshore counterpart traded at 7.0954 as of 0200 GMT.
Meanwhile, in the equity market, Chinese stocks slipped, with investors cautiously optimistic the leaders will agree on a trade war truce that may help sustain this year’s strong rally.
© New Straits Times Press (M) Bhd
