The yuan has barely budged this week despite growing US threats of sanctions over China’s ties to Iran, giving some strategists more confidence in their bullish calls on the currency. The onshore yuan traded between 6.7188 and 6.7264 per dollar this week — the tightest range since early 2016 — while holding near its strongest level since 2023. It also gained 0.3% against a basket of trading-partner currencies, based on a Bloomberg replica of the CFET S RMB Index.

The currency’s resilience suggests market confidence in its stability amid geopolitical pressure. Analysts note the yuan’s limited reaction reflects expectations of managed exchange rate policy and limited direct exposure to Iran-related sanctions. The move underscores the yuan’s growing role as a reserve asset and its relative insulation from short-term political shocks.