The yuan ended down against the dollar on Tuesday, hitting the lower end of its trading band for the 10th straight day as investors warily eyed a slower pace of rises in the Chinese currency amid a slowdown in the local and global economy. Spot yuan ended at 6.3652 against the dollar, up 138 pips from 10 trading days ago. The Chinese currency was down slightly from Monday's close of 6.3606.
The yuan has risen 7.24 percent since it was depegged from the dollar in June 2010. Benchmark offshore one-year dollar/yuan non-deliverable forwards (NDFs) have largely been forecasting yuan depreciation in a year's time since late September, reversing a trend of appreciation since the yuan's revaluation in July 2005. One-year NDFs were little changed at 6.4200 late on Tuesday against 6.4140 at the close on Monday, implying that the yuan would depreciate 1.33 percent in 12 months from Tuesday's PBOC mid-point, compared with a 1.22 percent fall implied on Monday.
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