Yuan Declines Amid Trade Tension Concerns

The Chinese yuan weakened against the US dollar on Monday as investors closely observed the dollar’s performance in international markets and monitored developments regarding trade tensions between the world’s two largest economies.

Currency market participants indicated that they would also be closely analyzing China’s manufacturing data for April, scheduled for release on Wednesday, seeking indications of any economic consequences resulting from US President Donald Trump’s tariffs on Chinese products.

Despite claims from President Trump about advancements in trade negotiations with China and other nations, concrete evidence remains limited. Treasury Secretary Scott Bessent did not confirm President Trump’s statement on Sunday that tariff discussions with China were ongoing.

Barclays economists noted, “We anticipate that China will keep avenues for negotiation open, but will not be hurried to finalize an agreement with the US.”