The yuan ended little changed against the dollar on Friday, even though the People's Bank of China set the mid-point at a record high, as dealers reported large dollar demand from corporate clients. The Chinese central bank set the yuan's daily mid-point at a record high, clearly breaking away from the psychological level of 6.5 per dollar, which reflects its intention to let the yuan rise above this level in the future, dealers said.
Before trade began, the PBOC set the yuan's daily mid-point at 6.4898 against the dollar, up from Thursday's 6.4921. The central bank uses the mid-point to guide the currency. Spot yuan closed at 6.4917 versus the dollar, compared with Thursday's 6.4915. The Chinese currency has now appreciated 5.15 percent since it was depegged from the dollar in June 2010, and 1.49 percent since the start of this year. Offshore, one-year non-deliverable forwards (NDFs) were bid at 6.3710.
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