China's yuan slipped against the US dollar on Thursday, even amid a stronger daily fixing, as the dollar found support after Federal Reserve minutes pointed to another rate hike "fairly soon". Traders expected the spot yuan market to remain quiet before the Fed's rate decision and start of China's National People's Congress (NPC) parliamentary session in Beijing in early March.
The People's Bank of China set the midpoint rate at 6.8695 per dollar prior to market open, firmer than the previous fix 6.8830. The spot market opened at 6.8739 per dollar and was changing hands at 6.8786 at midday, 5 pips weaker than the previous late session close and 0.13 percent weaker than the midpoint. The yuan traded within a range between 6.8813 and 6.8739.
The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, stood at 95.24, weaker than the previous day's 95.31. The global dollar index rose to 101.29 from the previous close of 101.22.
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