The yuan ended slightly down against the dollar on Wednesday, after the People's Bank of China set a weaker mid-point, signalling its intention to keep the yuan relatively stable in the near term. Spot yuan closed at 6.5721 versus the dollar, down slightly from Tuesday's close of 6.5684. The currency has risen around 3.9 percent since it was depegged in June 2010.
Before trading began, the PBOC fixed the yuan's mid-point at 6.5748 on the dollar, weaker than Tuesday's 6.5687. The dollar/yuan exchange rate can trade up or down a maximum 0.5 percent in a given day from the mid-point, which is used by the PBOC to express the government's intentions for the currency. Benchmark one-year dollar/yuan non-deliverable forwards (NDF) were bid at 6.4190, slightly up from 6.4080 at Tuesday's close. Their implied yuan appreciation in a year's time fell to 2.4 percent from 2.6 percent.
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