China is preparing to consider yuan-linked stablecoins as part of its efforts to expand the currency's use worldwide, in what would represent a significant departure from its previous stance on digital assets.

Gold rose nearly 1% on Wednesday as the U.S. dollar eased, while market participants braced for the minutes of the U.S. central bank's last policy meeting and upcoming Jackson Hole symposium for clues on future interest rate moves.

More supportive of the dollar still, is the impact PineBridge expects from the introduction of stablecoins. Kelly views the GENIUS Act legislation, recently signed into law, will be tremendously positive for stablecoins by creating a regulatory framework and addressing issues like security, backing, redemption, disclosure and custody.

Talk about privilege. The dollar is not just the currency of the United States; it is what's called the world's "reserve currency," where people and institutions park their money. But there's concern that policies out of Washington could erode that status to the benefit of the euro and China’s currency , the yuan.

Kenya is in talks with China to convert dollar-denominated debt the East African nation owes its biggest bilateral lender to yuan and extend the repayment period, Treasury Secretary John Mbadi said.

China is reportedly considering allowing the usage of yuan-backed stablecoins for the first time, as per a latest Reuters report. This is a developing story.

The Canadian dollar strengthened against the greenback on Wednesday, and the yield on benchmark government debt climbed. The loonie was trading 0% higher at C$1.3857 to the greenback, or 72.17 U.S. cents,

The yuan may see further gains past 7 against the dollar, according to a top Chinese economist, as debate grows among market participants over whether Beijing will allow it to appreciate.

ANZ, the Australian bank, said it now expected two further interest rate cuts after the dovish pivot. The New Zealand dollar fell 1.1 per cent against the US dollar to a four-month low.

The U.S. dollar was little changed on Wednesday as traders awaited a speech from Federal Reserve Chair Jerome Powell at the annual Jackson Hole central bankers' symposium later this week for clues on the path of monetary policy.