Yuan ends limit-down

China's yuan closed at its lowest daily trading limit against the dollar from the Chinese central bank's mid-point on Thursday, as traders reported unilateral demand for dollars. Spot yuan closed at 6.3983 against the dollar, weaker than 6.3938 at Wednesday's close and weakening to its trading limit of 0.5 percent from 3.3665, the fixing by the People's Bank of China.
The dollar/yuan exchange rate may rise or fall 0.5 percent from the mid-point each day, according to Chinese rules. Offshore, benchmark one-year dollar/yuan non-deliverable forwards NDFs were bid at 6.3920 in late trade, compared with Wednesday's close of 6.3800. Their implied yuan depreciation in 12 months expanded to 0.40 percent from Wednesday's 0.21 percent.