China's yuan firms as Iran war de-escalation hopes dent dollar appeal

China's yuan firmed to its strongest level in a week against the dollar on Wednesday, as expectations of a near-term end to the Middle East war reduced the greenback's appeal.

The onshore yuan changed hands at 6.8866 per dollar in early trading, having hit its firmest level since March 24.

U.S. President Donald Trump said that Washington could end its military attacks on Iran within two to three weeks and Tehran did not have to make a deal as a prerequisite for the conflict to wind down.

The dollar index, which surged over the past month due to its safe-haven status, was roughly flat in Asia trade on Wednesday, after falling 0.6 percent in the previous session - the biggest drop in almost two weeks.

"The dollar weakness and China's economic resilience contribute to the yuan's strength," Nanhua Futures said in a note to clients.

Reuters