SHANGHAI: China’s yuan was steady on Monday, as the prospects of further economic stimulus and a likely increase in dollar selling by Chinese exporters offset the disappointment from Beijing’s debt swap scheme.

Yuan volatility could spike again next year as Donald Trump returns to the White House, potentially escalating trade tensions with China as the president-elect has threatened tariffs in excess of 60% on all Chinese goods.

The US currency has rallied broadly in recent weeks driven by the Trump trade that is set to usher in policies seen as inflationary, potentially tempering the extent of future rate cuts by the Federal Reserve.

The yuan traded at 7.1838 per dollar around midday, little changed from Friday’s close of 7.1860, having dropped 0.8% last week amid fears of tariff hikes under the Trump presidency.