SHANGHAI: China's yuan closed flat on Wednesday in the absence of fresh developments but volumes were higher than average and trade was active, suggesting the market has found a healthy equilibrium.
Spot yuan closed at 6.2303 per dollar, 0.04 percent stronger than Tuesday's close.
The central bank set its midpoint at 6.2865 per dollar, minutely firmer than Tuesday's fix.
"We are watching both domestic and overseas developments for signs of new direction," a trader at a joint-stock bank in Shanghai said.
"In the absence of further intervention by the central bank, I think we're going to stay in this territory for the rest of the year," she added.
Trading volumes were above average, clocking over $14 billion worth of transactions by the end of the day.
The CNH dealt rate stood at 6.2070 at the close on Wednesday, 0.37 percent stronger than the onshore rate. The CNH hit a record high against the dollar in intra-day trade on Dec. 11 when it changed hands at 6.2030 per dollar.
Offshore non-deliverable forwards continue to forecast depreciation in 12 months time. One-year non-deliverable forwards changed hands at 6.3080 per dollar.
Comments
Comments are closed for this article.