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2026.03.3005:43:40UTC+00Offshore Yuan Edges Higher

The offshore yuan inched higher to around 6.91 per dollar on Monday, paring some of the previous week’s losses despite subdued market sentiment amid escalating tensions in the Middle East. The confrontation between the United States and Israel on one side and Iran on the other has plunged the region into turmoil, effectively closing the Strait of Hormuz—a critical chokepoint for global trade—and putting major energy facilities at risk.

China, however, appears relatively insulated from the immediate impact of the crisis, supported by sizeable strategic energy reserves and substantial investment in alternative energy sources. Even so, the yuan is expected to come under renewed pressure in the near term, as the prolonged conflict drives oil prices higher and strengthens demand for the US dollar.

On the trade front, Beijing has opened investigations into US trade practices in response to earlier probes launched by the Trump administration. The move comes on the heels of a White House announcement confirming that Trump was scheduled to visit China in mid-May for a long-anticipated summit with President Xi Jinping.

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