The offshore yuan held around 6.89 per USD on Tuesday, struggling to rebound from a one-month low touched last week, as markets weighed US President Trump’s remarks over the duration of the Middle East war, while strong domestic trade data supported sentiment. Figures showed China’s January-February trade surplus widened to a record high of USD 213 billion, beating estimates as exports and imports jumped 21.8% and 19.8%, respectively. Meanwhile, Trump said the war with Iran may be nearing its final stage and signaled possible steps to ease pressure on energy markets. G7 finance ministers also said they stand ready to release crude from strategic reserves if necessary, though no measures have been taken so far, leaving markets uncertain about whether such actions would be sufficient to stabilize oil prices and ease geopolitical risks. Still, China is expected to weather oil price shocks better than other major economies due to its vast crude stockpiles and diversified energy sources.
