Iron ore reaches a peak of more than a week as China promises to steady the market.

January 23, Beijing (Reuters) - Tuesday saw an increase in iron ore futures to a level not seen in over a week as investor confidence was bolstered by officials in China, the world's largest buyer, pledging to stabilise the market.

At 965.5 yuan ($134.70) a metric tonne, the most-traded May iron ore contract on China's Dalian Commodity Exchange (DCE) DCIOcv1 closed daytime trading 1.42% higher, reaching its highest level since January 12.

By 07:24 GMT, the benchmark February iron ore SZZFG4 on the Singapore Exchange had increased by 2.01% to $131.55 per tonne, the most since January 12.

In the wake of a decline in Chinese stocks, state broadcaster CCTV claimed on Monday that China will take more robust and effective steps to boost market confidence, citing a cabinet meeting.

According to Reuters, China's main state-owned banks moved on Monday to support the yuan and keep it from depreciating too quickly.

This action followed Beijing's decision last week to maintain the rate on its medium-term lending facility, which indicated Beijing's constrained leeway for monetary easing in the face of yuan pressure. Beijing maintained benchmark lending rates unchanged at its monthly fixing on Monday.

Beijing, anticipating weaker economic development, has set a growth target of about 5% for 2024, exceeding the aim of over 4.5% set last year.