Wednesday, 16 November 2011 16:48
SHANGHAI: The yuan ended little changed against the dollar on Wednesday, after the People's Bank of China set a weaker mid-point and the dollar index hit a one-month high as the euro zone debt crisis threatened to engulf top-rated members.
Dealers said the weaker mid-point also indicated China's stance, that it would continue to control the pace of yuan rises even as the US president Barack Obama pressured China over its currency and trade policies during the APEC summit.
"China has sent a very strong signal that it will not let the yuan rise or fall too much due to a slowdown in the domestic economy," said a dealer at a Chinese commercial bank in Shanghai.
China's weaker exports outlook was also a reason for the central bank to keep the yuan stable for now.
The Ministry of Commerce said on Wednesday that China's exports outlook was not optimistic for the rest ...