FX.co ★ Offshore Yuan Extends Recovery

The offshore yuan strengthened to around 6.884 per USD, extending its recovery from last week’s losses, as the Chinese economy showed resilience despite the escalating war in Iran. At the same time, markets weighed former President Trump’s request to delay a planned summit with China. He asked Xi Jinping to postpone their meeting by roughly a month so he could remain in Washington to oversee the conflict. The delay, however, appears manageable for Beijing, as senior officials from both sides met in Paris in recent days to continue trade talks.

Treasury official Scott Bessent noted that any postponement would stem from scheduling considerations rather than an attempt to pressure China over the strategically important shipping route. Meanwhile, the latest data indicated that China’s industrial output growth accelerated in January–February, while retail sales rebounded, underscoring the economy’s underlying momentum.

Although the US dollar remained firm as investors sought safe-haven assets amid the Iran conflict, the yuan was supported by China’s relatively limited exposure to oil price shocks, resilient export performance, and continued dollar selling by Chinese exporters.