SHANGHAI: China's yuan barely moved against the dollar on Wednesday after the central bank set an official midpoint that signalled its intention to keep the Chinese currency stable for the last week of 2013, traders said.
Most market players believe that the People's Bank of China has been setting unofficial yearly targets for the yuan since the currency's landmark revaluation in 2005, aimed at balancing international pressure for yuan appreciation and the needs of domestic exporters.
Traders reckon the central bank has achieved its target for 2013.
Spot yuan changed hands at 6.0711 yuan per dollar by midday, compared with Tuesday's close of 6.0714. The central bank set Wednesday's midpoint at 6.1160, little changed from Tuesday's fix of 6.1145.
Traders said the yuan is likely to hold near 6.07 through the year-end.
In 2014, China's resilient trade surplus and healthy capital inflows will continue to support yuan appreciation, with the central bank continuing to use the midpoint to moderate the pace of gains, they said.
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