FX.co ★ Offshore Yuan Holds Ground

On Tuesday, the offshore yuan maintained its recent appreciation, stabilizing at approximately 7.17 per dollar. This strength was bolstered by tentative ceasefire discussions between Iran and Israel, as announced by U.S. President Donald Trump. According to Trump, the ceasefire commenced on Monday night, with Iran expected to initially halt its attacks. Nevertheless, investor caution prevailed after Iran's foreign minister dismissed the notion of a U.S.-facilitated agreement, stating that Tehran would only cease its actions contingent upon a stop to Israeli airstrikes. Further supporting the yuan, dovish remarks from Federal Reserve officials advocating for imminent interest rate cuts exerted downward pressure on the U.S. dollar. Domestically, investor attention was focused on a significant legislative meeting in Beijing this week, where policymakers are examining amendments to the anti-unfair competition law, with particular emphasis on regulations within cyberspace. Although substantial stimulus measures are improbable, the meeting underscores Beijing's commitment to economic stability and enforcing market discipline. Looking ahead, the upcoming Politburo meeting next month is anticipated as a source for potential insights into economic support initiatives.