The yuan closed down slightly against the dollar on Thursday even though the PBOC set a stronger mid-point, after China's exports came in weaker than expected, which may take some pressure off the yuan to appreciate. Spot yuan finished at 6.5747 versus the dollar, down slightly from Wednesday's close of 6.5721. The currency has risen 3.8 percent since it was depegged in June 2010.
Before trading began, the PBOC fixed the yuan's mid-point at 6.5713 on the dollar, stronger than Wednesday's 6.5748. The dollar/yuan exchange rate can trade up or down a maximum 0.5 percent in a given day from the mid-point, which is used by the PBOC to express the government's intentions for the currency. Benchmark one-year dollar/yuan non-deliverable forwards (NDF) were bid at 6.4360, up from 6.4110 at Wednesday's close. Their implied yuan appreciation in a year's time fell to 2.1 percent from 2.5 percent.
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