Offshore Yuan Slips from 3-Year Peak
2026-05-26 05:02
By
Czyrill Jean Coloma
1 min. read
The offshore yuan weakened to around 6.78 per dollar on Tuesday, retreating from a more-than three-year high reached in the previous session as renewed military strikes eroded optimism over a potential US-Iran peace deal.
The US conducted military strikes in southern Iran, targeting vessels allegedly attempting to lay naval mines, along with missile launch sites, in what Washington described as defensive operations.
Further weighing on the yuan, the People's Bank of China set the midpoint rate at 6.8288 per dollar, 466 pips weaker than the Reuters estimate, though still its strongest fixing since February 2023.
The central bank has continued to guide the midpoint softer than market expectations, a strategy widely viewed as an effort to preserve currency stability.
The yuan is expected to remain broadly range-bound, supported by the PBoC’s stability-focused stance and easing corporate dollar-selling pressures.