Yuan bounces as China mulls market bailout

The Chinese yuan and Australian dollar rebounded slightly on Tuesday following Beijing plans to put about two trillion yuan ($278 billion) into supporting ailing Chinese markets, according to Reuters.

The dollar dipped 0.3 per cent against the offshore yuan to 7.1722 yuan, while its onshore counterpart also strengthened. Down Under, the Aussie rose more than 0.5 per cent to $0.6607, and the New Zealand dollar gained 0.47 per cent to $0.6106.

Chinese authorities are considering measures to stabilise a slumping stock market, mainly from offshore accounts of state-owned enterprises, as part of a stabilisation fund to buy shares onshore through the Hong Kong exchange link.