SHANGHAI: China's yuan ended the day flat on Tuesday in average volume as global currency markets awaited signs of progress on the US "fiscal cliff" impasse.
The yuan closed at 6.2324 per dollar, 0.04 percent firmer than Monday's close.
The central bank also held its official midpoint stable at 6.2880 per dollar, barely changed from Monday's fix of 6.2892.
The People's Bank of China (PBOC) allows the exchange rate to rise or fall 1 percent from the midpoint it sets each morning.
Trading volume stood at $12.7 billion at market close, up from Monday's 9.7 billion.
The dollar index, which the yuan usually tracks inversely while moving in sympathy with the euro, declined slightly in overnight trade.
Offshore yuan one-year non-deliverable forward contracts (NDFs) have flattened out in December but continue to imply depreciation in the next 12 months, quoted at 6.3114 at the close.
Offshore spot yuan (CNH=D3) continued to trade at a wide premium to onshore yuan, at 6.2105 to the dollar. The premium, which has been widening steadily in September, supports theories that the onshore value of the yuan is being restrained, but analysts also say it is likely to swell offshore yuan deposits as corporates look to arbitrage the difference.
Center>Copyright Reuters, 2012
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