Yuan Continues Decline Amid Inflation Concerns and Renewed Tensions

The offshore yuan has continued to hold its decline against the US dollar, trading around 6.72 per dollar on Wednesday.

This follows a strengthening of the greenback as inflation concerns grow and expectations rise for a near-term Federal Reserve rate hike.

The dollar remained firm amid renewed tensions in the Middle East, which heightened fears of disruptions in the Strait of Hormuz and added to inflationary pressures.

The People's Bank of China set the daily midpoint fixing at 6.7829 per dollar, a move that signaled continued efforts by policymakers to temper the yuan's appreciation.