SHANGHAI: China's yuan barely moved against the dollar on Monday after the central bank set a slightly weaker official midpoint and state-owned banks continued buying dollars to curb appreciation pressure, traders said.
Spot yuan traded at 6.0906 per dollar near midday, compared with Friday's close of 6.0905, after the People's Bank of China (PBOC) fixed Monday's midpoint at 6.1390, or 0.06 percent weaker than the previous one of 6.1355.
"Corporate sales continue keeping dollar supply abundant, while state banks absorb most excessive dollar supply, which many believe is being done on behalf of the central bank," said a trader at a Chinese commercial bank in Shanghai.
"That means the yuan is still under pressure to appreciate, while the PBOC is trying to keep the pace of yuan rises under control," the trader added.
On Friday, the government posted better-than-expected October exports and trade surplus, helping explain the source of what traders have said was an overabundance of dollars in the domestic market.
China's exports rebounded by 5.6 percent in October from a year earlier, beating market expectations for a 3.2 percent rise and adding to a run of indicators suggesting the economy has found its footing.
Imports rose 7.6 percent against a poll forecast for an 8.5 percent rise, leaving the trade surplus at $31.1 billion compared with forecasts of $23.9 billion.
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