The offshore yuan traded around 7.09 per dollar on Wednesday, hovering near a one-year high as optimism persisted ahead of the highly anticipated meeting between Presidents Donald Trump and Xi Jinping. Trump indicated that he expects to reduce fentanyl-related tariffs on China ahead of the meeting in South Korea later this week, following reports that the Washington may slash the existing 20% tariffs on fentanyl-linked exports by half in exchange for Beijing tightening controls on chemicals used in fentanyl production. Meanwhile, the PBoC set the yuan’s midpoint rate at 7.0843 per dollar, its strongest level in a year, though the adjustment factor has been nudged weaker for three straight days. Investors are now closely watching the daily fixing after regulators signaled that new trade-facilitating policies may be revealed soon, likely aimed at curbing rapid yuan gains to protect exports or at allowing the currency to appreciate to boost imports and meet US trade deal commitments.