China's yuan slips as investors await Trump-Xi talk details

China's yuan weakened slightly against the dollar on Thursday, Business Recorder reported, as traders waited for results from the Trump-Xi meeting in Washington. The spot rate stood 0.09% lower at 6.7171 per dollar as of 0224 GMT, moving between 6.7141 and 6.7195 earlier in the session. The currency's move came as the greenback gained on expectations of an early Federal Reserve rate increase.

The dollar hit a near two-month high, while 10-year Treasury yields rose to their highest since 2007. Analysts said the yuan and other Asian currencies faced more pressure as US yields rose and tighter Fed expectations lifted the dollar. Earlier, the midpoint rate was set at 6.7489 per dollar, 305 pips below a Reuters forecast.

Treasury Secretary Scott Bessent said on Fox News that the trade truce has been stretched to January 10, a two-month extension that fell short of market forecasts. Traders have modest hopes for the talks because major disagreements on trade and technology persist. Separately, the People's Bank of China plans to supply as much as 1 trillion yuan ($149 billion) daily through short-term liquidity operations near month-end ahead of the Golden Week holiday.