The Chinese yuan has strengthened against the US dollar, reaching its strongest levels since November and April in onshore and mid-point rates, respectively. On May 6, the onshore yuan rose to 7.23 per dollar, its highest since March 20, appreciating by 0.4% to align with the offshore yuan as markets resumed trading. This appreciation was partly driven by positive policy signals and a weakening US dollar amid ongoing trade discussions between China and the United States. Meanwhile, the US dollar experienced volatility, recovering some losses and gaining against the euro, pound, and yen at times, influenced by tariff negotiations and Federal Reserve caution ahead of upcoming interest rate decisions. Copper prices also rose due to renewed Chinese buying, briefly pressuring the dollar. By May 7, the dollar strengthened again, nearing 950 in local currency terms, as investors awaited the Federal Reserve's decision, which emphasized a cautious approach to rate adjustments.