The offshore yuan strengthened to around 6.884 per USD, extending its recovery from last week’s losses, as the economy signaled resilience despite the deepening Iran war, while markets weighed Trump’s request to delay a planned summit with China. He asked Xi Jinping to postpone their meeting by about a month so he could remain in Washington to oversee the conflict, though the delay may be manageable for Beijing as officials from both sides met in Paris in recent days to continue trade talks. Treasury Scott Bessent also said any postponement would be due to scheduling considerations rather than pressure on China over the vital shipping route. Meanwhile, recent data showed China’s factory output growth accelerated in January-February while retail sales rebounded. Also, despite the US dollar’s strength as investors sought safe-haven assets during the Iran war, the yuan remained supported by China’s lower exposure to oil shocks, resilient exports, and exporters’ continued dollar selling.

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