The Chinese yuan gives up some of its gains and the yen rises as worries about the return of growth

LONDON (Reuters) – The Chinese yuan gave up some of its earnings on Wednesday as weaker-than-expected economic data undermined the optimism sparked by the US decision to postpone tariffs on imports from China.

Enthusiasm on a larger scale has also diminished. The yen safe haven has risen again, indicating that risk appetite remains fragile. The yen weakened on Tuesday after the US announcement.

The decline in the yuan and the rise in the yen reflect badysts' view that the deferral of tariffs, while encouraging, is by no means a solution to the trade war between China and the United States. -United.

At the same time, Chinese economic data showed that the world's second largest economy continued to slow down. Chinese industrial production rose in July at the slowest pace in more than 17 years.

The yuan hit a one-week high against the dollar on Tuesday after US President Donald Trump postponed the September 1 deadline to impose 10% tariffs on other Chinese imports, by charging taxes on cell phones, laptops and more. Consumer goods. The announcement took place after the resumption of trade negotiations between China and the United States.

But the yuan fell 0.4% against the dollar to 7.0360, a level equivalent to more than seven yuan to the dollar, which had reached last week's announcement of the imposition 10%.

The yen rose 0.4% against the dollar, to 106.33 yen, after hitting a lows week on Tuesday.

The other major currencies have changed little.

The dollar index, which has fallen about 1% since early August, remained stable around 97.8.

The euro remained stable at 1.1180 USD, despite weak German GDP data in the second quarter.

In addition, data from one year to the next was higher than the economists polled by Reuters.

The pound remained stable at 1.2056 USD and hardly changed against the euro, trading at 92.73 pence.

However, current levels suggest investors are reluctant to pull sterling out of last year's multi-year lows.