Offshore Yuan Snaps 2-Session Gain

2026-04-07 03:23 By Czyrill Jean Coloma 1 min. read

The offshore yuan weakened to around 6.88 per dollar on Tuesday, snapping a two-session gain as mixed ceasefire signals and rising tensions in the Middle East pushed investors toward safe-haven assets like the greenback.

The US dollar gained support after President Donald Trump threatened strikes on Iranian power plants and bridges unless Tehran met his conditions, including reopening the Strait of Hormuz, by 8 p.m.

Eastern Time.

In a parallel diplomatic move, Bahrain circulated a draft UN Security Council resolution aimed at reopening the Strait, deliberately omitting language authorizing the use of force to avoid potential vetoes from Russia or China.

The Council is scheduled to vote Tuesday, just hours before Trump’s imposed deadline.

Domestically, investors are shifting their attention to key inflation data due later this week.

Consumer price growth is expected to ease slightly, while producer prices are projected to register their first annual increase since September 2022.



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Offshore Yuan Snaps 2-Session Gain
The offshore yuan weakened to around 6.88 per dollar on Tuesday, snapping a two-session gain as mixed ceasefire signals and rising tensions in the Middle East pushed investors toward safe-haven assets like the greenback. The US dollar gained support after President Donald Trump threatened strikes on Iranian power plants and bridges unless Tehran met his conditions, including reopening the Strait of Hormuz, by 8 p.m. Eastern Time. In a parallel diplomatic move, Bahrain circulated a draft UN Security Council resolution aimed at reopening the Strait, deliberately omitting language authorizing the use of force to avoid potential vetoes from Russia or China. The Council is scheduled to vote Tuesday, just hours before Trump’s imposed deadline. Domestically, investors are shifting their attention to key inflation data due later this week. Consumer price growth is expected to ease slightly, while producer prices are projected to register their first annual increase since September 2022.
2026-04-07
Offshore Yuan Extends Gains
The offshore yuan strengthened to around 6.87 per dollar on Monday, extending gains from the previous week in thin holiday trading, even as geopolitical risks remained elevated. Tensions in the Middle East continue to cloud market sentiment, with US allies such as Pakistan, Egypt, and Turkey reportedly working to broker a roughly 45-day ceasefire aimed at averting potential US strikes on Iran’s energy infrastructure and possible retaliation from Tehran. The latest developments follow President Donald Trump’s decision to extend his deadline to Tuesday for Tehran to reopen the Strait of Hormuz. However, Iran has rejected Washington’s ultimatum, stating it will only fully reopen the waterway once war-related damages are compensated. Domestically, investors are turning their focus to upcoming inflation data due later this week. Consumer inflation is expected to ease slightly, while producer prices are projected to post its first annual increase since September 2022.
2026-04-06
Offshore Yuan Set for Weekly Gains
The offshore yuan rose to around 6.88 per dollar on Friday, trimming gains from the previous session as market sentiment improved on growing hopes for the reopening of the Strait of Hormuz. Iran and Oman are said to be developing a protocol to “monitor transit” through the strategic waterway, a move aimed at easing regional tensions. Elsewhere, countries such as India and the Philippines are actively negotiating with Tehran to ensure the safe passage of vessels, while also forming small diplomatic circles and exploring barter-style agreements. Meanwhile, China and Pakistan are advocating for their own multi-point diplomatic plan, as Iran maintains tight control over the shipping lane. Domestically, RatingDog data showed China’s composite PMI fell to 51.5 in March from 55.4 in February 2026, as both manufacturing (50.8 vs 52.1) and services (52.1 vs 56.7) sectors slowed. Over the week, the yuan is poised for a weekly gain, breaking a four-week losing streak.
2026-04-03