FOREX-Yen sags, yuan soars after U.S-China trade truce

The yen sagged and the yuan rose in early Monday trade after the United States and China agreed to restart trade talks as U.S. President Donald Trump offered concessions on new tariffs and restrictions on tech company Huawei.

The dollar rose 0.4% to 108.37 yen, extending its recovery from near six-month low of 106.78 set last Tuesday. The Swiss franc, another safe-haven currency, fell 0.3% to 0.97915 franc to the dollar.

The offshore Chinese yuan gained 0.6% to 6.828 per dollar , its highest levels since May 10, just days after Trump threatened additional tariffs on China. After meeting Chinese President Xi Jinping on Saturday on the sideline of Group of 20 summit, Trump said he would hold back on tariffs and that China will buy more farm products.

Trump also said the U.S. Commerce Department would study in the next few days whether to take Huawei off the list of firms banned from buying components and technology from U.S. companies without government approval. Other major currencies were little moved in early trade, with the euro steady at $1.1367 and the Australian dollar also flat at $0.7026.