The yuan strengthened on Tuesday after China's top leaders pledged to step up policy support for the slowing economy, while the euro and sterling stabilized following recent declines as investors awaited major central bank meetings.
The yuan gained more than 0.5% in both onshore and offshore markets as investors welcomed comments from the Chinese Politburo meeting, though many were still seeking specific details on additional stimulus measures.
The positive sentiment from China lifted the Australian dollar, often seen as a liquid proxy for the yuan, which rose 0.4% to $0.6767.
In Europe, the pound rose 0.22% to $1.2854 after seven straight sessions of losses. The euro gained 0.12% to $1.1076, trimming earlier losses amid expectations for a small interest rate hike from the European Central Bank on Thursday.
Investors are awaiting this week's Federal Reserve meeting where a 25 basis point rate hike is widely expected. Markets will focus on the Fed's statement and press conference for clues on the future path of rates.
In Asia, the yen remained under pressure at 141.30 per dollar as the Bank of Japan is seen likely to maintain its dovish policy stance at its upcoming meeting.
