The Chinese yuan is rallying towards the end of the trading week after President Donald Trump invited Chinese officials to restart trade negotiations. The yuan, nearing a one-week high against its US counterpart, has been paring some of its losses against a basket of currencies in recent trading sessions, advancing 0.15% since Monday.
On Wednesday, the Trump administration has invited Chinese officials to Washington for renewed trade talks, which comes days after the White House suggested it would escalate its trade war with the world’s second-largest economy by imposing an extra $200 billion worth of tariffs on Chinese imports.
Larry Kudlow, the presidentâs top economic adviser, revealed that the administration has received some valuable discussions and information that the top officials in Beijing are aimed to pursue talks. He added that Treasury Secretary Steven Mnuchin has sent out the invitations.
At the end of August, a delegation of Chinese and other Asian officials arrived in Washington to engage in trade deliberations. The negotiations were unsuccessful as both sides went ahead with more import levies and restrictions.
President Trump tweeted on Thursday that Beijing is âunder pressure to make a dealâ with the US:
The Wall Street Journal has it wrong, we are under no pressure to make a deal with China, they are under pressure to make a deal with us. Our markets are surging, theirs are collapsing. We will soon be taking in Billions in Tariffs & making products at home. If we meet, we meet?
The yuan further benefited from a sliding greenback, which plunged on news of reduced trade tensions. In 2018, the US dollar has served as a safe-haven asset in times of immense volatility, a typical characteristic of gold and silver.
Also, the US Department of Labor reported that the consumer price index (CPI) climbed 0.2% last month, which is less than the market forecast of 0.3%.
The USD/CNY currency pair tumbled 0.23% to 6.8447, from an opening of 6.8605, at 16:13 GMT on Thursday. The EUR/CNY rose 0.15% to 7.9888, from an opening of 7.9751.
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