The offshore yuan strengthened to around 6.75 per dollar on Monday, extending the previous week’s gains and marking its highest level since January 2023. The move came as reports of a potential US–Iran peace breakthrough weighed on the dollar broadly and lifted regional currencies.
The preliminary deal is said to include the reopening of the Strait of Hormuz, a halt to hostilities, and a framework for negotiations on Iran’s nuclear program. Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed the agreement, and officials from both countries are expected to meet in Switzerland to formally sign it. However, key details remain unresolved, and no official text has yet been released.
Domestically, investors continued to gauge the resilience of China’s economy amid recent signs of uneven growth, focusing in particular on industrial production, retail sales, and unemployment data.
