The offshore yuan firmed to around 6.89 per USD on Tuesday, snapping a two-session losing streak after the central bank delivered its largest midpoint adjustment in more than six months. The People’s Bank of China set the daily fixing at 6.9088 per dollar, 148 pips stronger than the previous level, signaling efforts to stabilize the currency amid heightened geopolitical tensions in the Middle East.
However, the fixing was still weaker than market expectations, indicating that authorities are trying to balance currency support with policy flexibility. The move follows recent changes to FX forward reserve requirements, underscoring the central bank’s calibrated approach: curbing the yuan’s rapid appreciation while cushioning exporters from excessive volatility.
Market attention now shifts to China’s annual “Two Sessions,” scheduled from March 4 to around March 11, where policymakers are expected to set key economic targets, outline policy priorities, and unveil the 15th Five-Year Plan, which will define strategic objectives for 2026–2030.
