The offshore yuan edged higher to around 6.82 per dollar on Monday, remaining near its strongest level since February 2023, as robust economic data lent support to the currency. China’s industrial profits soared 15.5% year-on-year in Q1 2026, accelerating from 15.2% in the January–February period. The expansion highlights the resilience of the country’s industrial base, even as tensions in the Middle East continue to weigh on the global outlook. In a related development, Iran has reportedly presented to the US with a new proposal aimed at reopening the Strait of Hormuz and de-escalating the conflict. While geopolitical uncertainty persists, domestic producer prices are showing early signs of recovery after more than three years of deflation, helping to ease pressure on industrial firms that have been grappling with rising input costs linked to the conflict. China’s industrial sector remains central to its post-pandemic recovery, supported by resilient exports.
