China's yuan ended higher against the dollar on Monday, taking its cues from a stronger mid-point set by the central bank and resuming its steady long-term uptrend afterr a correction late last week The yuan closed against the dollar at 7.6194, up from Friday's close of 7.6207.
"I think the central bank has kept its steps steady, aiming for modest appreciation in the medium term. There may be uncertainty over whether the booming economy might push the yuan up further, but it will still remain under control," said a dealer at a major Chinese commercial bank.
The yuan weakened during the latter half of last week as it digested gains from a rally that had taken it to post-revaluation highs for six straight trading sessions.
Dealers said the start of trade in shares of Blackstone Group LP, in which China invested $3 billion for non-voting shares, would not have a major short-term impact on the yuan, but China's broader move to diversify its huge foreign exchange reserves could ease upward pressure on the yuan in the long term.
Analysts also pointed out that the investment in Blackstone, one of the world's largest private equity groups, was small compared with China's $1.2 trillion in foreign exchange reserves as of the end of March.
Before yuan trading began on Monday, the central bank fixed its daily mid-point at 7.6192 to the dollar, up from Friday's 7.6224. After the drop late last week, the mid-point has again begun inching towards its post-revaluation peak of 7.6155 to the dollar, set last Wednesday.
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