16.03.202603:10:06UTC+00Offshore Yuan Stabilizes

The offshore yuan inched up to around 6.901 per USD on Monday, snapping last week’s losing streak as investors assessed fresh geopolitical and trade developments against a backdrop of stronger-than-expected Chinese data. Industrial output, retail sales, and fixed-asset investment all beat forecasts, indicating firmer economic momentum at the start of the year. Still, underlying challenges remained: the property sector stayed under significant strain and unemployment continued to rise. Officials also warned that escalating geopolitical tensions could darken the outlook, especially as the widening conflict in the Middle East threatens global growth and trade flows. In the latest escalation, President Trump ordered strikes on Iranian military assets on Kharg Island and warned of further attacks on crude infrastructure. He also suggested he might postpone an upcoming summit in Beijing unless China helps to reopen the Strait of Hormuz. Even so, current data indicate that China’s economy may be relatively less vulnerable to potential disruptions in the Hormuz strait.