Yuan steady after dollar softens

SHANGHAI: China’s yuan held steady against the US dollar on Tuesday, supported by overnight losses in the greenback even as higher dollar deposit rates capped its gains, with markets awaiting US inflation data for clues on the policy outlook.

A sharp drop in global oil prices and an improvement in risk appetite that lifted US technology stocks provided some support for the yuan.

The spot yuan opened at 6.6711 per dollar and was trading at 6.671 as of 0300 GMT, 14 pips firmer than the previous session’s close.