The offshore yuan weakened past 6.83 per dollar on Friday, heading for its first weekly decline in three weeks, as the greenback continued to strengthen amid little sign of easing in Middle East tensions. President Trump ordered a “shoot and kill” against Iranian boats allegedly laying mines in the Strait of Hormuz, injecting fresh volatility into energy markets.
Surging crude costs are already feeding through supply chains, prompting some Chinese exporters to raise prices to offset higher fuel and raw material expenses. In March, several consumer goods categories recorded notable annual costs increases, reversing a prolonged period of relative price stability. Despite these headwinds, analysts remain cautiously optimistic about the yuan’s broader trajectory, noting that China’s substantial domestic energy reserves, along with signs of a steady economic recovery, could help anchor the currency and limit sustained depreciation pressure.
