The yuan was an outperformer, rising sharply after trade data for the first two months of the year read substantially stronger than expected

Most Asian currencies remained under pressure on Tuesday amid little clarity on a de-escalation in the U.S.-Israel war with Iran.

The yuan was an outperformer, rising sharply after trade data for the first two months of the year read substantially stronger than expected.

The yuan’s USD/CNY pair fared much better than its peers, dropping 0.3% and back below the 6.9-yuan level. The currency was also aided by a stronger midpoint fix from the People’s Bank.

Government data showed China logged a much bigger-than-expected trade surplus in the January-February period, driven by an outsized surge in exports.

The print indicated that China’s massive export industry remained strong after a robust 2025, and was likely to continue underpinning growth in the coming months.

Strong domestic spending during the Lunar New Year holiday also helped Chinese imports grow more than expected, although it remains to be seen whether this trend will continue past the holiday season.

The yen’s USD/JPY pair gained 0.1% on Tuesday, with the currency remaining under pressure from dollar strength and uncertainty over the energy disruptions hurting the Japanese economy.

Revised gross domestic product data for the fourth quarter showed Japan’s economy grew much more than initially expected, aided by strong capital expenditures and steady consumer spending.

The print highlighted some resilience in Japan’s economy, although it also showed exports remaining under pressure. Private spending growth was also revised higher but remained in line with the historical average of nearly 0.3% quarterly.

Still, resilience in the economy gives the Bank of Japan more headroom to raise interest rates, although the central bank is unlikely to act amid heightened market uncertainty.

Broader Asian currencies largely dropped as markets remained on edge over the Iran war.

The Australian dollar’s AUD/USD pair shed 0.2%, while the won’s USD/KRW pair surged 1.1%.

The Singapore dollar’s USD/SGD pair gained 0.1%, while the Indian rupee’s USD/INR pair rose 0.1%, pushing further above the 92-rupee level.