SHANGHAI: The yuan edged higher against the dollar on Friday as dollar sales by exporters offset a slightly weaker central bank midpoint, traders said.
Spot yuan changed hands at 6.1392 versus the dollar at midday, rising 0.03 percent from Thursday's close even though the People's Bank of China (PBOC) fixed the official daily midpoint at 6.1751, or 0.05 percent weaker than Tuesday's fix.
"The market appears to have lost direction and is likely to move narrowly around 6.14 next week," said a dealer at a Chinese commercial bank in Shanghai.
Many dealers expect the Chinese currency to remain largely flat in coming months or fall slightly, but to then strengthen to around 6.1 versus the dollar, a 2 percent gain for all of 2013. So far this year, the yuan has strengthened 1.48 percent.
After the yuan rallied strongly in April and May, the PBOC has held it in a narrow range, amid a slowdown in economic growth.
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