On Monday, the Chinese Yuan is stable against the dollar, reducing concerns that China may continue to lower the rate of the national currency again after the sudden devaluation last week stunned the world markets.
On Monday, August 17, the People's Bank of China set the benchmark exchange rate slightly higher than at the close of trade on Friday, easing fears that the currency will decline for a long period.
Yuan suffered its largest weekly decline in history when it has fallen to four-year lows after last Tuesday China's central bank cut the benchmark exchange rate with 1.9%, the fastest pace since 1994.
The Central Bank explained the decision as "a one-time amortization", based on a new method of management of the exchange rate which reflects market forces more efficiently.
The unexpected decision has provoked fears that China will allow the Yuan to continue to decline, which could lead to a global currency war.
The People's Bank of China said on Thursday that a further weakening of the currency has no real reason, in an effort to calm and stabilize the international markets.
The fall of the Yuan, which occurred last week, could "sharply reduce the likelihood" of such adjustments for the future, said Sunday Ma Jun, the chief economist at the central bank.
Uncertainty about the impact of the devaluation of the world inflation expectations and growth prospects of China raised concerns that the Federal Reserve may delay raising interest rates.
Investors are preparing for publication of the Wednesday Fed meeting minutes, which took place on July 28-29, in the hope of clarifying the plans of the US Central Bank on the timing of interest rates rise.
The USD index, which tracks the US currency against a basket of six major rivals, was little changed and is traded at 96.61.