The offshore yuan strengthened to around 6.75 per dollar on Monday, extending gains from the previous week and reaching its highest level since January 2023, as a reported US-Iran peace breakthrough triggered broad-based dollar weakness and boosted regional currencies. The tentative agreement reportedly includes the reopening of the Strait of Hormuz, a cessation of hostilities, and a framework for negotiations over Iran’s nuclear program. Iranian Deputy Foreign Minister Kazem Gharibabadi also confirmed the agreement, with officials from both countries expected to meet in Switzerland to formally sign the deal. However, key details remain unresolved, while no official text has yet been released. On the domestic front, investors continued to assess the strength of China’s economy following recent signs of uneven growth, particularly industrial production, retail sales, and unemployment figures.
