The yuan ended little changed versus the dollar on Friday after the Chinese central bank set a slightly higher mid-point, with traders adopting a wait-and-see attitude in the absence of clear direction on yuan appreciation. Dealers said the market was waiting for clearer signals on how the People's Bank of China would pace the currency's appreciation amid signs of an economic slowdown and persistently stubborn inflation, which may pose a drag on yuan rises.
Spot yuan finished at 6.4650 on Friday, little changed from Thursday's close of 6.4658. It has now appreciated 5.59 percent since it was depegged from the dollar in June 2010 and 1.93 percent so far this year. Before trade began, the PBOC fixed the yuan's mid-point at 6.4705 against the dollar on Friday, stronger than the previous day's 6.4732. The central bank uses the fixing to guide the currency's trading on behalf of the government. Offshore, benchmark one-year dollar/yuan non-deliverable forwards (NDFs) were bid at 6.3770 in late trade, down slightly from 6.3800 at the previous close.
Comments
Comments are closed for this article.