Some analysts estimate that the Chinese central bank may have sold $10 billion-$20 billion in the last week to prop up the yuan. US crude, meanwhile, jumped more than 3 percent, a day after dipping below the $30 barrier for the first time in 12 years. This gave relief to commodity-linked currencies like the Norwegian crown. "The broader market tone is showing signs of tentative risk appetite, bolstered by continued stability in China's exchange rate and reinforced by the release of better-than-feared trade figures out of China," said Eric Theoret, currency strategist, at Scotiabank in Toronto.
The People's Bank of China (PBOC) fixed the daily mid-point for the yuan at 6.5630 to the dollar, little changed from the steady fixes of the previous two days, alleviating some of the fears that have weighed on investors' minds about a sharp and quick depreciation in the currency. The fixing came as the central bank put a squeeze on offshore sellers of the currency by making it prohibitively expensive to speculate against the yuan. In mid-morning trading, the dollar rose 0.4 percent against the yen to 118.12, while the euro was down 0.1 percent at $1.0848.