SHANGHAI: China's yuan barely moved against the dollar on Wednesday, sustaining its recent trend, after the central bank set a slightly weaker mid-point.
The People's Bank of China (PBOC) set its official mid-point at 6.1626, or 0.03 percent weaker than Tuesday.
But it has kept the official base rate, from which the Chinese currency can rise or fall 2 percent in a given day, largely stable since the start of May, signalling its intention to keep the currency steady for now, traders said.
Taking cues from the PBOC's latest stance, spot yuan stood at 6.2385 per dollar by midday, almost unchanged from Tuesday's 6.2384.
"The largely stable mid-point, plus a rough balance of dollar supply and demand in the market, kept the yuan little changed today," said a dealer at a European bank in Shanghai.
"With no major market-moving factors around the corner, the yuan is likely to remain stable in coming weeks."
The yuan has rebounded 0.3 percent against the dollar so far in May after the central bank engineered a 3.3 percent depreciation in the currency in the first four months of this year to deter speculators from betting on a non-stop yuan rise.
Before this year's unexpected depreciation, the yuan had steadily appreciated by more than 30 percent since its landmark revaluation in 2005. Many market participants believe the "redback" is close to its equilibrium level while two-way fluctuations will be the new norm.
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