China stabilized its currency Tuesday after allowing it to fall precipitously amid the ongoing trade war with the U.S.

The yuan on Tuesday afternoon rebounded to 7.0297 to the dollar after previously falling to 7.0562, an 11-year low, The Associated Press reported. A weaker yuan would mitigate the effects of U.S. tariffs on Chinese exports by making them more competitive in the international market.

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The Treasury Department on Monday labeled China a currency manipulator, with Treasury Secretary Steven Mnuchin Steven Terner MnuchinOn The Money: Anxious Democrats push for vote on COVID-19 aid | Pelosi, Mnuchin ready to restart talks | Weekly jobless claims increase | Senate treads close to shutdown deadline Vulnerable Democrats tell Pelosi COVID-19 compromise 'essential' Pelosi asks panels to draft new COVID-19 relief measure MORE saying the government will "engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China’s latest actions."

According to the AP, Chinese central bank governor Yi Gang pledged in a statement late Monday “not to use exchange rates for competitive purposes.”

He said the central bank is “committed to maintaining the basic stability” of the yuan “at a reasonable and balanced level.”

Stocks reacted positively to the news on Tuesday after suffering the worst day of the year the day before.

The Dow Jones Industrial Average plunged 767 points on Monday, erasing all of its gains since January 2018, amid President Trump Donald John TrumpSteele Dossier sub-source was subject of FBI counterintelligence probe Pelosi slams Trump executive order on pre-existing conditions: It 'isn't worth the paper it's signed on' Trump 'no longer angry' at Romney because of Supreme Court stance MORE's trade war with Beijing.