The offshore yuan depreciated to around 6.88 per dollar on Friday, extending losses from the previous session as investors weighed fresh U.S. trade probes targeting several economies, including China. The Trump administration launched a new investigation under Section 301(b) to examine whether policies in key economies, particularly those related to forced labor, are “unreasonable or discriminatory” and harm US commerce. This follows a probe on Wednesday under the same section, which allows the president to impose tariffs on countries found to be engaging in unfair trade practices. The latest investigations are complicating US–China relations and threatening the fragile trade truce ahead of a high-stakes summit in Beijing. Externally, the yuan was also under pressure from a strengthening US dollar, fueled by safe-haven demand amid escalating Middle East tensions. Despite the declines, the offshore yuan remains on track for a weekly gain.
