The offshore yuan traded around 6.81 per dollar, hovering near its strongest level since March 2023, supported by improved sentiment following renewed diplomatic signals between the US and Iran. Trump said Tehran had reached out for a deal, while Iran’s President Pezeshkian expressed willingness to continue talks if aligned with international law. The Middle East war has revived “petroyuan” talk promoted by Xi Jinping as an alternative to the dollar, with the currency gaining traction in energy trade as Iran accepts yuan for oil and favors its use in Hormuz shipping. Domestically, export growth slowed to a five-month low of 2.5% year-on-year, reaching USD 321.03 billion. Meanwhile, imports surged 27.8% to USD 269.90 billion, the fastest pace of growth since November 2021. As a result, the trade surplus narrowed sharply to a more than one-year low of USD 51.13 billion in March 2026, from USD 101.93 billion a year earlier and well below expectations of USD 112 billion.