Offshore Yuan Gains on Upbeat PMI Data

2026-03-31 03:07 By Czyrill Jean Coloma 1 min. read

The offshore yuan edged higher to around 6.91 per dollar on Tuesday, extending modest gains from the previous session, supported by the unexpectedly strong return of expansion in PMI data.

Official figures showed composite PMI rising to a three-month high of 50.5 in March 2026, signaling renewed growth across both sub-sectors.

The manufacturing PMI rose to a one-year high of 50.4, while the non-manufacturing PMI increased to 50.1, supported by government stimulus, strong holiday spending, and solid exports despite global supply chain disruptions and volatile energy markets.

However, while the Chinese policymakers have repeatedly emphasized the need to pivot the economy toward domestic consumption and reduce reliance on external demand, geopolitical risks, such as the ongoing Middle East war, could weigh on business activity in the coming months.

The yuan is still on track for a monthly decline, as the US dollar continues to benefit from safe-haven demand amid geopolitical turbulence.



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Offshore Yuan Gains on Upbeat PMI Data
The offshore yuan edged higher to around 6.91 per dollar on Tuesday, extending modest gains from the previous session, supported by the unexpectedly strong return of expansion in PMI data. Official figures showed composite PMI rising to a three-month high of 50.5 in March 2026, signaling renewed growth across both sub-sectors. The manufacturing PMI rose to a one-year high of 50.4, while the non-manufacturing PMI increased to 50.1, supported by government stimulus, strong holiday spending, and solid exports despite global supply chain disruptions and volatile energy markets. However, while the Chinese policymakers have repeatedly emphasized the need to pivot the economy toward domestic consumption and reduce reliance on external demand, geopolitical risks, such as the ongoing Middle East war, could weigh on business activity in the coming months. The yuan is still on track for a monthly decline, as the US dollar continues to benefit from safe-haven demand amid geopolitical turbulence.
2026-03-31
Offshore Yuan Edges Higher
The offshore yuan edged higher to around 6.91 per dollar on Monday, trimming losses from the previous week despite subdued market sentiment amid escalating tensions in the Middle East. The US–Israel confrontation with Iran has thrown the region into turmoil, with the Strait of Hormuz, a key artery for global trade, effectively closed and threatened major energy facilities. However, China appears largely insulated from the crisis, holding substantial energy reserves and having invested heavily in alternative energy sources. Still, the yuan is expected to weaken in the near term, as ongoing conflict pushes oil prices higher and bolsters demand for the US dollar. On the trade front, Beijing has launched investigations into US trade practices in response to earlier probes by the Trump administration. This move follows the White House’s confirmation that Trump was scheduled to travel to China in mid-May for a long-awaited summit with President Xi Jinping.
2026-03-30
Offshore Yuan Remains Near 3-Week Low
The offshore yuan held losses around 6.91 per dollar on Friday, staying at its lowest level in nearly three weeks as market sentiment remained under pressure due to conflicting signals over potential de-escalation in the Middle East. In its latest development, US President Donald Trump announced he would extend a pause on attacks against Iran’s energy infrastructure into April, and described talks with Tehran as ‘going very well.’ However, an Iranian official dismissed a reported US proposal to end the conflict as “one-sided and unfair.” Losses in the yuan were partially cushioned by strong economic data from China. Profits at industrial firms soared 15.2% year-on-year to CNY 1.02 trillion in the first two months of 2026, marking a sharp rebound from just 0.6% growth in 2025. The figures point to improving momentum in China’s recovery, even as geopolitical tensions cloud the global outlook. Over the week, the yuan is set to post a weekly decline.
2026-03-27