SHANGHAI: The yuan edged up against the dollar on Wednesday after China's economic growth for the second quarter came in moderately better than expected, helping to offset a weaker central bank midpoint.
Spot yuan stood at 6.2066 by midday, up 0.02 percent from Tuesday's close.
"The slightly better-than-expected GDP figures help to reinforce market participants' stance on going long on the yuan for now," said a trader from an Asian bank in Shanghai.
China's economy grew 7.5 percent between April and June from a year earlier, slightly above expectations and quickening from the 7.4 percent pace in the first quarter, reinforcing hopes that a recovery is under way after a flurry of government stimulus measures.
With market anticipation of yuan appreciation rising recently due to China's improving economic data, the People's Bank of China (PBOC) appeared to have acted to dampen excessive bullish sentiment on the Chinese currency.
On Wednesday, the PBOC fixed its midpoint 0.07 percent weaker at 6.1535 per dollar, a move seen largely in line with a strengthening in the US currency in global markets.
The dollar index rose 0.25 percent overnight and clung to modest gains early on Wednesday after bulls latched onto a comment by the head of the Federal Reserve that rates could rise sooner if employment continued to improve.
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