FX.co ★ Offshore Yuan Set for Weekly Decline

The offshore yuan weakened beyond 6.83 per dollar on Friday, putting it on track for its first weekly decline in three weeks, as the US dollar extended its gains amid persistent tensions in the Middle East. President Trump ordered US forces to “shoot and kill” Iranian boats allegedly laying mines in the Strait of Hormuz, injecting fresh volatility into global energy markets.

The resulting surge in crude prices is already filtering through supply chains, prompting some Chinese exporters to lift prices to offset higher fuel and raw material costs. In March, several consumer goods categories posted notable year-on-year price increases, marking a break from an extended period of relative stability.

Even so, analysts remain cautiously optimistic about the yuan’s medium-term outlook. They point to China’s sizable domestic energy reserves and signs of a steady economic recovery as key factors that could help anchor the currency and mitigate the risk of prolonged depreciation.