The Chinese yuan balancing act fuels both opportunity and friction

The Chinese yuan's recent rally against the greenback may still have room to run as Beijing guides the currency higher and is seen as favoring holding off on the next rate cut. However, the yuan's drop against other major currencies is stoking renewed trade friction. The offshore yuan has gained about 3% against the dollar this year, as the U.S. dollar tumbled against all major currencies for a mix of reasons, including America's economic slowdown, its rising debt burden and foreign policy uncertainty. The U.S. dollar index has declined over 10% so far this year, on track for its worst year in more than two decades, according to LSEG data. The offshore yuan last traded at 7.118 per dollar as of Monday, hovering near its strongest level since U.S. President Donald Trump's presidential elect