The offshore yuan depreciated past 6.92 per dollar on Wednesday, marking its fourth consecutive session of losses as the strengthening greenback continued to weigh on the currency. The US dollar firmed as it emerged as the preferred safe-haven currency amid evolving Middle East tensions. On the domestic economic front, official data showed the composite PMI fell to over three-year low of 49.5 in February 2026, with both manufacturing and services activity remaining below the 50-mark threshold. In contrast, a private survey revealed that the composite PMI rose to a near three-year high of 55.4 in February, mainly driven by continued expansion in both the manufacturing and services sectors. Meanwhile, market attention has also turned to the annual “Two Sessions” meetings in Beijing, namely the National People’s Congress and the Chinese People’s Political Consultative Conference. Policymakers are expected to prioritize economic policy, technological development, and defense.
