The yuan held steady on Wednesday after the US launched strikes against Iran. EBC Financial Group analyst said there are still high uncertainties over the Middle East peace prospect.
Trump said earlier this week that a deal to end the war in Iran could be reached in "two or three days," and that the critical Strait of Hormuz would reopen "immediately" after such a deal.
China's trade growth held up better than expected in May, as surging AI-driven exports helped buffer the economy against geopolitical tensions, with US-bound shipment logging the strongest jump in 5 years.
Despite so, the yuan's sustained strength this year has led to some pressure on the country's exporters as mounting foreign-exchange losses have started to weigh on profits.
The producer price index jumped 3.9% from a year ago, the highest since July 2022, but consumer prices rose 1.2% in May, missing economists' estimates of 1.3% growth.
Several Chinese banks have raised dollar deposit rates in recent weeks, sources said, in a move some traders say is likely aimed at slowing the pace of yuan appreciation.
The yuan eased after an inverted hammer candlestick formed at the swing high on 2 June. After a decisive breach of the support around 6.7750 per dollar, we see it continue to weaken towards 6.7840 per dollar.
Asset recap
As of market close on 9 June, among EBC major products, Thermo Fisher Scientific shares led gains as the company introduced new mass spectrometry platforms and AI software.
ServiceNow shares was down sharply. The pullback happened as traders focus on macro pressure points that tend to hit premium software multiples, higher energy prices and higher bond yields.
Oil prices dropped after US Energy Secretary Chris Wright said ship traffic through the Strait of Hormuz is "rising very meaningfully" though a peace deal has not materialised.
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