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07.04.202603:23:59UTC+00Offshore Yuan Snaps 2-Session Gain

The offshore yuan weakened to around 6.88 per dollar on Tuesday, ending a two-session advance as conflicting ceasefire signals and escalating tensions in the Middle East drove investors toward safe-haven assets such as the US dollar. The greenback found additional support after President Donald Trump threatened strikes on Iranian power plants and bridges unless Tehran met his conditions—most notably reopening the Strait of Hormuz—by 8 p.m. Eastern Time. In a parallel diplomatic effort, Bahrain circulated a draft UN Security Council resolution aimed at reopening the Strait, deliberately excluding any authorization for the use of force in order to avoid potential vetoes from Russia or China. The Council is set to vote on Tuesday, just hours before Trump’s self-imposed deadline. On the domestic front, investors are turning their focus to key inflation data due later this week, with consumer price growth expected to slow modestly and producer prices forecast to record their first annual increase since September 2022.

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