FX.co ★ Offshore Yuan Gains on Upbeat PMI Data

The offshore yuan inched higher toward 6.91 per dollar on Tuesday, extending modest gains from the previous session, buoyed by an unexpectedly strong rebound in PMI data. Official figures showed the composite PMI climbing to a three-month high of 50.5 in March 2026, indicating renewed growth across both manufacturing and services. The manufacturing PMI rose to a one-year peak of 50.4, while the non-manufacturing PMI advanced to 50.1, supported by government stimulus, robust holiday spending, and resilient exports despite ongoing global supply chain disruptions and volatile energy markets. Still, although Chinese policymakers have repeatedly stressed the need to reorient the economy toward domestic consumption and reduce dependence on external demand, geopolitical risks—such as the ongoing war in the Middle East—could dampen business activity in the coming months. The yuan remains on track for a monthly decline, as the US dollar continues to draw safe-haven demand amid heightened geopolitical uncertainty.