China's forex reserves uplifted by strong yuan amid trade hopes

China's foreign exchange reserves rose slightly in February as growing optimism over U.S.-China trade talks buoyed the yuan currency for a fourth straight month, easing worries about capital outflows from the slowing economy. Chinese reserves rose by $2.26 billion in February to $3.090 trillion, central bank data showed on Thursday.

Economists polled by Reuters had expected reserves would fall $920 million to $3.087 trillion. The yuan gained 0.1 per cent against the dollar in February and is up more than 2 per cent so far this year. The dollar index rose 0.6 per cent in February.

The United States and China appear close to a deal that would roll back U.S. tariffs on Chinese goods, as Beijing makes pledges on structural economic changes and eliminates retaliatory tariffs on U.S. goods, a source briefed on negotiations said on Sunday. The value of China's gold reserves also rose slightly to $79.498 billion from $79.319 billion at the end of January.