Offshore Yuan Hits Over 3-Year High

2026-05-06 02:31 By Czyrill Jean Coloma 1 min. read

The offshore yuan strengthened to around 6.81 per dollar on Wednesday, reaching its strongest level since February 2023, as demand for safe-haven assets such as the US dollar weakened amid diplomatic progress between the US and Iran.

Market sentiment improved after President Donald Trump pointed to what he described as “great progress” toward a “complete and final agreement with representatives of Iran,” while stating that the US would temporarily pause efforts to assist stranded vessels leaving the Strait of Hormuz.

In parallel, Trump indicated he would discuss the Iran conflict with Chinese President Xi Jinping during their upcoming summit on May 14–15, while seeking to temper tensions surrounding the issue.

On the domestic front, a private survey showed that the composite PMI rose to 53.1 in April from 51.5 in March, as both manufacturing output (52.2 vs. 50.8) and services activity (52.6 vs. 52.1) expanded at a faster pace.



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