Forex – Yuan Edges Down; Huawei’s Legal Action Against U.S. in Focus

© Reuters. – The Chinese yuan edged down against the U.S. dollar on Wednesday in Asia as tensions in the Sino-U.S. trade spat escalated.

The pair rose 0.1% to 6.9132 by 11:30 PM ET (03:30 GMT).

Trade tensions ratcheted higher after the Global Times, an English-language Chinese newspaper, tweeted that China was seriously considering cutting exports of rare earth metals in response to the U.S.’s recent imposition of higher import tariffs on its goods and an effective boycott of telecoms giant Huawei.

It came after U.S. President Donald Trump said on Monday that Washington was not ready to make a deal with China yet.

China’s central bank said Wednesday it will inject CNY 270 billion ($39.09 billion) into the economy through seven-day reverse bond repurchase agreements, according to Reuters. The amount of daily net cash injection via reverse repo operations is the biggest since Jan.17, 2019, the report said. The PBOC has injected a net 400 billion yuan so far this week.

The , which measures the currency against a basket of six peers, was almost unchanged at 97.820, having ended the previous session up 0.3%. The index was trading about 0.5% off a two-year high of 98.371 hit on Thursday and is still up 1.8% for the year.

The pair edged up 0.1% to 0.6544, while was up 0.1% to 0.6929.

The dollar was steady against the yen, with last at 109.31.

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