Offshore Yuan Edges Lower

2026-05-04 06:55 By Czyrill Jean Coloma 1 min. read

The offshore yuan edged lower to around 6.83 per dollar on Tuesday, as renewed tensions between the US and Iran kept markets on edge.

Both countries’ forces exchanged fire in the Persian Gulf, shaking a ceasefire that had largely held since coming into effect on April 8.

Adding to the tension, the UAE said it intercepted Iranian cruise missiles and blamed a drone strike for a fire at Fujairah port, while also issuing nationwide missile alerts for the first time since the ceasefire.

Meanwhile, President Trump said he anticipates meeting President Xi Jinping, signaling that plans for a high-stakes summit on May 14–15 remain on track despite fresh strains between the world’s two largest economies.

In a renewed strain in US–China relations, Washington’s push to intensify pressure on Tehran to end the conflict has led to sanctions on Chinese refiners processing Iranian oil.

In response, Beijing has ordered domestic companies not to comply with US sanctions targeting those private refiners.



News Stream
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The offshore yuan weakened to around 6.77 per dollar on Wednesday, retreating from a one-month high reached in the previous session as escalating geopolitical tensions in the Middle East fueled safe-haven demand for the US dollar. The greenback remained firm after Washington carried out strikes on Iranian targets for an 11th consecutive day, while President Donald Trump downplayed expectations for negotiations with Tehran. Further pressuring the yuan, the People's Bank of China set the yuan's midpoint rate at 6.7933 per dollar, 196 pips weaker than Reuters' estimate, signaling official tolerance for a softer exchange rate. Investors are now looking ahead to the Politburo meeting expected later this month for clues on Beijing's economic policy direction in the second half of the year, with any signals of fresh stimulus or additional growth-support measures likely to shape the yuan's outlook.
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