Pan Gongsheng, director of the State Administration of Foreign Exchange and a central bank deputy governor, stressed at a forum in Hong Kong on Tuesday that China is "confident in maintaining the renminbi basically stable" at a reasonable level.
USA markets are set to close early for the Fourth of July holiday.
The yuan extended losses and has fallen around eight percent since the end of March - it is now at an 11-month low - adding to fears about the mainland as leaders struggle to cap a debt mountain while also supporting growth.
Analysts dismissed some claims that authorities are allowing the Chinese currency to weaken in order to offset the impact of any tariffs.
"Markets are still in a wait and see mode and risk sentiment is subdued", said Thu Lan Nguyen, a currencies analyst at Commerzbank in Frankfurt. It's just not 1MDB hotting up, but with Ex-PM Najib Razak reportedly arrested, this investigation could open a massive can of worms as this probe and ensuing court battle could run deep while exposing an underbelly of corruption, bribery and government fraud.
People Are Still Missing After a Tourist Boat Capsized Off Thailand's Phuket
Thirteen people were confirmed dead in a tourist boat accident off the coast of Phuket island, a state news site reports Friday. Phuket officials had earlier issued a warning of severe weather until next Tuesday, including heavy rain and winds.
A Chinese central bank adviser was also quoted as saying authorities did not expect significant yuan depreciation, which also helped the yuan reverse early losses to move back into positive territory.
China's yuan rose sharply against the dollar on Wednesday and stocks flip-flopped a day after the People's Bank of China governor assured markets the central bank would keep the currency stable.
The call comes as United States lawmakers debate reimposing a ban on USA firms selling to Chinese telecoms equipment maker ZTE over security considerations, putting its survival in peril.
The trade row between the United States and major economies has rattled financial markets over several weeks, with no sign U.S. President Donald Trump is about to back down from his "America First" protectionism policies that many fear will harm the global economy. China Mobile's shares were down two percent.
The benchmark CSI300 Index .CSI300 ended the day down 1.3 percent, and the Shanghai Composite Index .SSEC was off 0.94 percent.
Michael Cohen scrubs 'Trump lawyer' Twitter bio
An archive video of Trump attacking Cohen then plays, with the president branding the Englishman a "third-rate character". Who knows what it all means but, for the record, Baron Cohen did go to school to learn about being amusing .
That helped MSCI's world index to rise 0.2 per cent, inching further off recent 2-1/2 month lows. Taipei and Jakarta fell but Manila and Bangkok rose.
Currently, the currency pair is trading at 6.6330 - up 0.24 percent on the day, but well below the high of 6.6390 seen on Friday. Trump's announcement came a week after OPEC reached a decision on increasing oil production after curbing output since 2017 in a bid to boost prices.
Trump told the World Trade Organisation on Monday that "we'll be doing something" if the United States is not treated properly, just hours after the European Union said that U.S. automotive tariffs would hurt its own vehicle industry and prompt retaliation.
The mood was more cheerful in Europe where a pan-European equity index rose half a per cent, the euro firmed marginally and bond yields rose after German Chancellor Angela Merkel struck the deal with her Bavarian conservative coalition partners.
Scott Pruitt resigns after scandal-plagued tenure
Mr Pruitt had become a constant source of embarrassment to a president who had entered Washington promising to "drain the swamp". The president added that he has "no doubt that Andy will continue on with our great and lasting EPA agenda".