Yuan jumps after Beijing pledged to support the economy, Euro and Sterling rose

The Chinese yuan rose on Tuesday after the country’s top leaders pledged to boost political support for the reeling economy, while the euro and the pound sterling stabilized after falling for days as investors awaited meetings of major central banks.

The yuan rose more than 0.5 percent in the onshore and offshore markets as investors were enthusiastic about the remarks from the Chinese Communist Party’s Politburo meeting, but many of them are still waiting for specific details on the enhanced stimulus measures.

The yuan reached 7.1444 per dollar in the foreign market, while it recorded 7.1454 per dollar in the internal market. Chinese shares also jumped, especially those of real estate companies.

The positive sentiment coming from China boosted the Australian dollar, which rose 0.4 percent to $0.6767.

In Europe, sterling rose 0.22 percent to $1.2854, its first daily gain, after falling for seven consecutive sessions, its longest losing streak since March 2020.

The euro rose 0.12 percent to $1.1076, after plunging to a two-week low of $1.1059 earlier in the session. Monday’s survey showed a larger-than-expected contraction in euro zone business activity in July.

The pressure continued on the yen, recording 141.30 per dollar, and it is facing difficulty in recovering from the heavy losses incurred on Friday, after a Reuters report stated that the Bank of Japan tends to keep the yield curve control policy unchanged during its meeting this week.