HONG KONG: China's yuan steadied on Tuesday as traders braced for a round of profit taking on the Chinese currency, which has gained more than 2 percent since May against a resurgent dollar.
On Tuesday, spot yuan stood at 6.1237 per dollar in late morning trades, little changed from Monday's close of 6.1241. The People's Bank of China fixed the daily midpoint slightly weaker at 6.1430 per dollar, compared with Monday's fix at 6.1409.
A trading link that let Hong Kong and Shanghai investors buy and sell shares on each other's bourses debuted on Monday with a 13 billion yuan ($2.12 billion) northbound daily quota reaching its limit within hours of the launch, providing a source of strength for the Chinese currency.
On Tuesday, trading was far more subdued with both northbound and southbound quotas seeing little take-up after Monday's hectic activity.
The yuan has made steady gains since May, rising more than 2.2 percent against the dollar due to China's strong trade surpluses while bucking a trend of weakening Asian currencies as the dollar strengthens in global markets.
The dollar index against a basket of major currencies has jumped more than 9 percent so far in the second half of this year.
Comments
Comments are closed for this article.