The offshore yuan held losses around 6.91 per dollar on Friday, staying at its lowest level in nearly three weeks as market sentiment remained under pressure due to conflicting signals over potential de-escalation in the Middle East. In its latest development, US President Donald Trump announced he would extend a pause on attacks against Iran’s energy infrastructure into April, and described talks with Tehran as ‘going very well.’ However, an Iranian official dismissed a reported US proposal to end the conflict as “one-sided and unfair.” Losses in the yuan were partially cushioned by strong economic data from China. Profits at industrial firms soared 15.2% year-on-year to CNY 1.02 trillion in the first two months of 2026, marking a sharp rebound from just 0.6% growth in 2025. The figures point to improving momentum in China’s recovery, even as geopolitical tensions cloud the global outlook. Over the week, the yuan is set to post a weekly decline.
