Tuesday, 20 December 2011 11:19
SHANGHAI: The yuan fell slightly against the dollar in see-saw trade on Tuesday after the People's Bank of China set a weaker mid-point, but the Chinese currency mostly traded in a narrow range.
Some investors sold yuan in early trade, continuing to speculate about its potential depreciation in the mid-term, but strong pressure from the Chinese central bank pulled the yuan back slightly.
"Today's moves have been volatile. After the yuan hit around 6.35, big banks offered dollars, which reflects the central bank's strong intention to halt expectations of yuan depreciation," said a dealer at a Chinese bank in Beijing.
Spot yuan was trading at 6.3415 against the dollar by midday, down slightly from 6.3378 at the close on Monday.
The yuan has still risen 3.91 percent so far this year and 7.64 percent since it was depegged in June 2010.
Before trading began, the PBOC fixed the day's mid-point at 6.3351, slightly lower ...