FX.co ★ Offshore Yuan Weakens on Safe-Haven Dollar Demand

On Friday, the offshore yuan weakened to approximately 7.18 against the dollar, reversing the gains from the previous trading day due to the strength of the US dollar. This shift was influenced by increased demand for safe-haven assets as geopolitical tensions in the Middle East intensified. Israel’s preemptive strike against Iran has elevated fears of a broader regional conflict. In response, Iran’s Armed Forces General Staff issued a warning, asserting that both Israel and the United States would face severe repercussions for their actions. Meanwhile, in China, officials announced plans for a new economic agreement with the 53 African nations it has diplomatic ties with. This accord aims to remove all tariffs and expand market access, benefiting not only the least developed countries (LDCs) but also middle-income nations. Investors are now focusing on important economic data expected next week, including reports on industrial output, retail sales, and unemployment rates.