Tuesday, 06 August 2013 10:08
SHANGHAI: China's yuan edged higher on Tuesday after the central bank set a slightly higher midpoint, reflecting a mild weakening in the dollar in global markets overnight.
Spot yuan changed hands at 6.1234 per dollar near midday, 0.02 percent stronger than Monday's close of 6.1247.
The People's Bank of China (PBOC) set its official midpoint at 6.1753, or 0.02 percent stronger than Monday's 6.1767 to reflect a 0.1 percent dollar fall overnight.
Traders said they expect the market to remain stable, even torpid, in the current economic context.
"Yuan/dollar trading remains directionless," said a senior trader at a Chinese commercial bank in Shanghai.
"The central bank's recent midpoint has clearly indicated that the government doesn't want the yuan to rise or fall sharply while economic growth is weakening."
Traders said potential yuan appreciation was expected to be limited as growth in the world's second-largest economy slowed to an annual rate of 7.5 percent in the second quarter, down from 7.7 percent in the first quarter.
The yuan is likely to move in a narrow range of 6.12 to 6.14 in coming weeks, they said.Copyright Reuters, 2013