The offshore yuan weakened to around 6.88 per dollar on Thursday, pressured by a stronger US dollar. The greenback advanced as rising oil prices intensified inflation concerns and raised expectations that the Federal Reserve may adopt a more hawkish policy stance.
Additional downward pressure on the yuan came from a weaker-than-expected daily fixing by the People’s Bank of China, which set the midpoint at 6.8959 per dollar — 106 pips softer than Reuters’ estimate — signaling a more accommodative official bias toward currency depreciation.
At the same time, robust trade data helped temper otherwise subdued market sentiment. China’s exports jumped 21.8% year-on-year to $656.6 billion in January–February 2026, while imports climbed 19.8% to $443 billion.
However, this momentum may face headwinds as the Trump administration launches Section 301 investigations aimed at replacing reciprocal tariffs recently struck down by the Supreme Court. The move gives the US greater leeway to target imports from countries it deems to be engaging in unfair trade practices.
