SHANGHAI: China’s yuan was steady against the dollar on Monday despite the deepening Iran war, as traders studied fresh economic data and monitored ongoing Sino-US trade talks. The dollar has jumped recently as the war in the Middle East drove investors toward safe-haven assets, but analysts say the yuan has support from China’s economic fundamentals and is buffered against energy shocks. Chinese financial markets have shown notable resilience as “China is structurally less vulnerable to oil price shocks today” than during previous commodity supercycles, OCBC said in a note to clients. The onshore yuan changed hands at around 6.9000 per dollar at midday, barely changed from Friday’s close. The dollar index pulled back 0.2% in Asian trading after strengthening 1.7% last week in its best week since September 2024. On Sunday, US officials predicted that the US-Israeli war on Iran would end within weeks, but Iran said it remained “stable and strong” and ready to defend itself. In another sign that the conflict could deepen, US President Donald Trump threatened more strikes on Iran’s main oil export hub, Kharg Island, over the weekend and said he was not ready to reach a deal to end the war. “Before geopolitical risks and oil market disruptions are eased, the dollar still has temporary support, although US economic fundamentals do not warrant sustainable strength,” Huatai Futures said in a report. “On the China side, the yuan continues to be bolstered by export resilience, exporters’ tendency to sell dollars and China’s cushion against energy shocks,” the brokerage said, adding that Sino-US trade talks could affect the short-term mood. Top US and Chinese officials are in trade talks in Paris ahead of an expected meeting in Beijing between US President Donald Trump and Chinese President Xi Jinping. “The dollar has regained upward momentum thanks to growing geopolitical risks,” Nanhua Futures said. “Although the yuan is not likely to resume appreciation any time soon, its trend over the long run is determined by domestic economic fundamentals.” Data showed on Monday that China’s factory output growth quickened in January and February, while retail sales rebounded in a steady start to the year.