SHANGHAI: China’s yuan edged higher on Wednesday, as a report of a possible plan to ease the country’s housing glut boosted sentiment, outweighing U.S President Joe Biden’s decision to impose steep tariff increases on an array of Chinese goods.

The yuan recouped earlier losses after Bloomberg reported, citing unidentified sources, that China is considering a proposal to have local governments buy millions of unsold homes, in an attempt to rescue the property market.

A protracted property market crisis has been a major drag on the world’s second-largest economy in the last few years, and any fresh measures to tackle the issue are welcome signs for the markets, currency traders said.

The spot yuan opened at 7.2322 per dollar and weakened to a low of 7.2347, before reversing course to change hands at 7.2280 at midday, 50 pips firmer than the previous late session close.