Offshore Yuan Remains Strong

The offshore yuan steadied around 6.79 per dollar on Monday, remaining at its strongest level since February 2023, supported by robust trade data ahead of a highly anticipated meeting between Presidents Donald Trump and Xi Jinping. Exports surged 14.1% year-on-year to a record USD 359.44 billion in April 2026, easily surpassing expectations for a 7.9% rise and climbing markedly from March’s 2.5% growth, supported by continued investment tied to the global artificial intelligence boom despite shipping disruptions caused by the closure of the Strait of Hormuz. Meanwhile, imports jumped 25.3% from a year earlier to an all-time high of USD 274.62 billion, marking a second straight month of record purchases and signaling resilient domestic demand. Investors are now focused on the closely watched Trump-Xi meeting in Beijing later this week, where the two leaders are expected to discuss the Middle East conflict, Taiwan, and a new framework for trade negotiations.

The offshore yuan traded around 6.79 per dollar on Friday, extending its rally to a fourth consecutive session and marking a fresh high since February 2023, as markets look ahead to a potential Trump–Xi summit next week. The two leaders are expected to meet in Beijing on May 14–15, a summit previously postponed due to geopolitical tensions linked to the Middle East conflict. In a fresh escalation, three US Navy destroyers transiting the Strait of Hormuz reportedly intercepted Iranian attacks and carried out retaliatory strikes. Uncertainty remains over the visit, with Xi Jinping’s government reportedly cautious about proceeding before the US–Iran standoff shows clearer signs of de-escalation. Separately, China’s financial regulators have reportedly ordered major banks to halt new financing for five US-sanctioned refineries over alleged Iranian oil ties, marking a shift from earlier guidance to disregard US sanctions. For the week, the currency is on track for a weekly gain.

The Chinese Yuan touched 6.81 against the USD, the highest since February 2023. Over the past 4 weeks, US Dollar Chinese Yuan lost 0.39%, and in the last 12 months, it decreased 6.02%.