Recent developments in international markets have brought positive news for the Chinese currency — the yuan. This increase occurred following the latest statements from President Donald Trump, who indicated a preference against raising tariffs on exports to China. As a result, the yuan reached its strongest level in six weeks, both domestically and on foreign markets.

Signs of Economic Stability

1. Trump's Statements: In an interview, the president confirmed his preference for not imposing new tariffs against China, which helps alleviate tensions in trade relations between the two countries.

2. Yuan's Appreciation: This news allowed the yuan to strengthen its position in the foreign exchange markets, positively impacting China's relationships with other economies, notably Australia and New Zealand.

3. Currency Dynamics: The Australian and New Zealand dollars rose by more than 0.5%, further reflecting growing confidence in the global economy.

Bond Market and Stock Market Performance

Trump's remarks also affected Treasury bond yields. With the decline in yields, investors began to view economically sensitive assets as safer investments.

On the stock market, there has been a significant rise in the Hang Seng China Enterprises Index, which jumped by over 2%. This indicator reflects improved investor sentiment, potentially paving the way for long-term stability in the Chinese economy.

Key Reasons for Yuan's Strengthening

• The influence of Trump's statements on the market;

• Increased interest from foreign investors in Chinese assets;

• The overall dynamics of the global economy that currently favor riskier assets.

Given the current state of the yuan and the positive signals from the markets, it can be expected that foreign investments in China may strengthen their positions in the coming months. Government support in terms of tariff reductions could lead to improved economic indicators and the resilience of the yuan.