SHANGHAI: China's yuan firmed against the dollar on Monday, with technical buying helping to offset the impact of slightly worse-than-expected manufacturing surveys and weaker daily fix.
An official survey showed an index of growth in China's vast manufacturing sector fell from a 27-month high to 51.1 in August, slightly less than forecast and adding to signs of growing softness in the Chinese economy.
Another survey by HSBC/Markit Manufacturing, also released on Monday, showed its Purchasing Managers' Index (PMI) slipped to 50.2 in August - just a whisker below a preliminary reading of 50.3 - from July's 18-month high of 51.7. It was the lowest reading since May.
The People's Bank of China set the midpoint rate at 6.1680 per dollar prior to market open, down 0.05 percent from the previous fix. The spot rate is currently allowed to trade 2 percent above or below the midpoint.
The spot market opened at 6.1450 per dollar, and was changing hands at 6.1402 by midday, 0.05 percent stronger from the previous close.
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