Yuan rebounds after reports on possible support

SHANGHAI: China’s yuan strengthened on Tuesday, rebounding after hovering in recent sessions near a two-month low against the dollar, as it drew support from reports that the Chinese authorities are considering moves to bolster the stock market.

Chinese policymakers are seeking to mobilise about 2 trillion yuan ($279 billion), mainly from the offshore accounts of Chinese state-owned enterprises, as part of a stabilisation fund to buy shares, Bloomberg News reported, citing unnamed sources. The report followed a cabinet meeting on Monday, chaired by Premier Li Qiang, that indicated China would take more forceful and effective measures to stabilise market confidence, state media reported.