SHANGHAI: China’s yuan firmed on Monday with the dollar slipping after the nomination of prominent fund manager Scott Bessent as US Treasury Secretary undercut Trump trades.

The yuan was also bolstered by emerging views that Beijing may keep the currency stable as a countermeasure to a potential trade war under Donald Trump’s second term, meaning a sharp depreciation is unlikely.

“A stable RMB might better serve China’s interests in Trade War 2.0 by preserving its ability to export inflation while minimising domestic economic disruptions,” OCBC analyst Tommy Xie wrote in a note to clients.