Offshore Yuan Set for Second Monthly Gain

2026-05-29 02:49 By Czyrill Jean Coloma 1 min. read

The offshore yuan steadied around 6.76 per dollar on Friday, hovering near its strongest level since February 2023, bolstered by reports of an extended ceasefire agreement between the US and Iran.

Both sides agreed to prolong the truce for another 60 days to allow further negotiations over Tehran’s nuclear program, although US President Donald Trump has yet to formally approve the arrangement.

Meanwhile, China’s currency has drawn additional support from the global AI investment boom, which has fueled demand for Chinese technology exports and eased concerns in Beijing over yuan appreciation.

For the month, the yuan remains on track for a second consecutive monthly gain despite continued weaker-than-expected daily midpoint fixings from the People's Bank of China, as investors navigated rapidly shifting developments surrounding the Iran conflict while also assessing progress following the meeting between Presidents Donald Trump and Xi Jinping earlier this month.



News Stream
Offshore Yuan Set for Second Monthly Gain
The offshore yuan steadied around 6.76 per dollar on Friday, hovering near its strongest level since February 2023, bolstered by reports of an extended ceasefire agreement between the US and Iran. Both sides agreed to prolong the truce for another 60 days to allow further negotiations over Tehran’s nuclear program, although US President Donald Trump has yet to formally approve the arrangement. Meanwhile, China’s currency has drawn additional support from the global AI investment boom, which has fueled demand for Chinese technology exports and eased concerns in Beijing over yuan appreciation. For the month, the yuan remains on track for a second consecutive monthly gain despite continued weaker-than-expected daily midpoint fixings from the People's Bank of China, as investors navigated rapidly shifting developments surrounding the Iran conflict while also assessing progress following the meeting between Presidents Donald Trump and Xi Jinping earlier this month.
2026-05-29
Offshore Yuan Trades Near 3-Year High
The offshore yuan traded around 6.78 per dollar on Thursday, hovering near its strongest level since February 2023, buoyed by encouraging domestic economic data. Industrial profits in China jumped 18.2% year-on-year in January–April 2026, supported by robust demand for Chinese electronics and elevated oil prices linked to Middle East tensions. The figures followed earlier signs of slowing economic momentum reflected in industrial output and retail sales data. However, gains in the yuan were limited by a stronger US dollar, as lingering uncertainty surrounding a potential US-Iran agreement continued to bolster safe-haven demand. The US recently confirmed defensive airstrikes on an Iranian military site, while key sticking points in negotiations, including Tehran’s control over the Strait of Hormuz and its nuclear program remain unresolved.
2026-05-27
Offshore Yuan Slips from 3-Year Peak
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.
2026-05-26