The offshore yuan strengthened to around 6.79 per dollar on Wednesday, rebounding from the previous session as the People's Bank of China showed signs of resisting downward pressure on the currency. The central bank set the daily midpoint fixing at 6.8077 per dollar, just 59 pips weaker than Reuters' estimate.
The gap between the official fixing and market estimates has narrowed considerably from levels exceeding 500 pips over the past month, reinforcing expectations of greater official support for the yuan amid stronger US dollar.
The greenback remained supported by safe-haven demand after Washington carried out fresh military strikes against Iran and rescinded a sanctions waiver permitting Tehran to export oil to global markets.
The yuan has also faced pressure in recent sessions after the World Bank projected that China's economy would slow to 4.4% in 2026 and 4.3% in 2027, while Beijing lowered its 2026 GDP growth target to 4.5%–5.0%, from around 5% over the previous three years.