Market News
China's yuan pares some gains after US tariffs kick in - REUTERS
SHANGHAI, March 4 (Reuters) - China's yuan pared some earlier gains against the dollar on Tuesday after fresh U.S. tariffs on Chinese goods kicked in, heightening trade tensions and threatening to put more pressure on the uneven economy.
The United States doubled trade tariffs on Chinese goods to 20% on Tuesday, and Beijing quickly said it will impose additional tariffs of 10%-15% on certain U.S. imports from March 10 as retaliation.
But the currency market largely appeared calm following the tit-for-tat measures, traders said, with the onshore yuan only giving back some of its modest morning gains.
As of 0551 GMT, the onshore yuan was 0.07% higher at 7.2826, down from an intraday high of 7.2763.
It offshore counterpart traded at 7.2867 yuan around 0551 GMT.
The central bank had continued to guide the currency firmer hours ahead of the expected imposition of the U.S. tariffs.
The People's Bank of China (PBOC) has been offering support for the currency market by persistently setting firmer-than-expected midpoint fixings since mid-November, with traders and analysts interpreting the moves as an official attempt to keep the yuan steady.
