The yuan closed up versus the dollar on Friday after the People's Bank of China fixed a stronger mid-point, just shy of the fixing's record high. But trading was cautious amid signs that the PBOC may not want to be too aggressive in letting the yuan appreciate due to recent global market turmoil sparked by Japan's earthquake and nuclear crisis, traders said.
The yen skidded on Friday after the Group of Seven finance ministers agreed to act to limit its strength after the Japanese currency soared to an all-time high versus the dollar a day earlier. Spot yuan closed at 6.5691 versus the dollar, up from Thursday's close of 6.5744. The currency has now risen 3.88 percent since it was depegged in June 2010.
Before trading began, the PBOC fixed the yuan's mid-point at 6.5668 to the dollar, stronger than Thursday's 6.5718 and just shy of the fixing's record high of 6.5651 set on March 7. Benchmark one-year dollar/yuan non-deliverable forwards (NDF) were bid at 6.4460 in late trade on Friday.
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