SHANGHAI: China's yuan rose slightly on Monday after the People's Bank of China (PBOC) lifted the official mid-point guidance rate, with dealers reporting rebounding client demand as markets get back into swing after the Lunar New Year holiday.
Chinese financial markets opened for a single day on Friday following a one-week break, but trading volumes were tepid thanks to extended vacations, traders said.
Spot yuan was trading at 6.0605 per dollar at midday, up from 6.0634 at Friday's close after the PBOC set its midpoint slightly firmer at 6.1083, from Friday's 6.1089.
"Today's trade is more active than the previous (trading) day, we can see some clients' demand is rising now," said a dealer at a city commercial bank in Shanghai.
He expected the yuan could continue to rise slightly to as strong as 6.05 per dollar in the coming days.
On Saturday, the PBOC released its quarterly monetary policy report in which it reiterated plans to advance reforms to interest rates and the currency exchange rate system.
Dealers said they were waiting for more details on the reforms but said the expected impact on the yuan's value should be limited.
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