The offshore yuan hovered near 6.91 per dollar on Friday, holding around its weakest level in almost three weeks as market sentiment stayed fragile amid mixed signals over a possible de-escalation in the Middle East. In the latest development, US President Donald Trump said he would extend into April a pause on strikes against Iran’s energy infrastructure and described negotiations with Tehran as “going very well.” An Iranian official, however, rejected a reported US proposal to end the conflict as “one-sided and unfair.”
Strong Chinese economic data helped limit the yuan’s losses. Profits at industrial firms surged 15.2% year-on-year to CNY 1.02 trillion in the first two months of 2026, a sharp acceleration from growth of just 0.6% in 2025. The figures suggest China’s economic recovery is gaining traction, even as geopolitical tensions weigh on the global outlook. For the week, the yuan is on track to post a decline.
