The offshore yuan held its recent gains to around 7.17 per dollar on Tuesday, supported by tentative ceasefire talks between Iran and Israel announced by US President Donald Trump. According to Trump, the truce took effect late Monday, with Iran expected to cease attacks first. However, investor caution lingered after Iran’s foreign minister rejected claims of a US-brokered deal, stating Tehran would only stand down if Israeli airstrikes stopped.
Adding to the yuan’s support, dovish comments from Federal Reserve officials favoring near-term rate cuts weighed on the greenback. Domestically, investors closely watched a key legislative meeting in Beijing this week, where policymakers are reviewing revisions to the anti-unfair competition law, particularly in cyberspace regulation. While major stimulus is unlikely, the session signals Beijing’s focus on economic stability and market discipline. Attention also turns to next month’s Politburo meeting for clues on potential economic support.
