Forex – Yuan Rebounds on Reports of 'National Team' Support; Trade War in Focus

© Reuters. – The Chinese yuan rebounded on Tuesday in Asia following reports that China’s state-backed funds, also known as the “National Team,”injected cash into the market in an attempt to support local stocks and currency.

The pair edged down 0.1% to 6.8712 by 12:01 AM ET (04:91 GMT). Citing unnamed sources, the Hong Kong Economic Times reported that China’s National Team intervened and injected funds into the markets, but the report did not provide any further details. The news boosted investor sentiment and Chinese stocks rose immediately following the report, before falling back into the red shortly after.

The yuan sank to four-month lows against the greenback overnight after Beijing announced Monday it was raising tariffs on $60 billion of U.S. products from June 1 as the Sino-U.S. trade war escalated.

In an interview with CNBC, Treasury Secretary Steven Mnuchin said the two countries are “still in negotiations.”

President Donald Trump said the U.S. is in a “great position,” noting that “our economy has been very powerful; theirs has not been.” Trump said he will meet his Chinese counterpart Xi Jinping at next month’s G-20 summit in Osaka, Japan.

The safe-haven , which usually benefits during geopolitical or financial stress, was down 0.3% against the dollar at 109.59.

The that measures the greenback against a basket of other currencies was little changed at 97.115.

The pair and the pair gained 0.2% and 0.3% respectively.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.