The offshore yuan held steady around 6.88 per dollar on Wednesday, after strong gains in the previous session, as growing optimism over a possible near-term resolution to the Middle East conflict weakened demand for the US currency. US President Trump said American forces would wind down operations in Iran within two to three weeks, claiming that Iran was “begging to make a deal,” though he added that any agreement would be “irrelevant” to Washington’s withdrawal timeline. Earlier, Iranian President Masoud Pezeshkian stated that Tehran had the “necessary will” to end the conflict, provided that safeguards are in place to prevent a renewed outbreak of hostilities.
The yuan received additional support as BOC Hong Kong moved ahead with regulators to enhance digital wallets, following China’s decision to allow interest to be paid on the currency—an initiative that could encourage wider offshore use. Meanwhile, a private survey showed the manufacturing PMI eased to 50.8 in March 2026 from 52.1 in February. By contrast, official data indicated that the manufacturing PMI climbed to a one-year high of 50.4.
