SHANGHAI: Chin's yuan was almost unchanged in narrow trade on Friday after the central bank set a slightly weaker official midpoint to reflect a rally in the dollar index overnight.
Traders said the yuan market was likely to continue directionless trading in the near term as recent midpoint settings by the People's Bank of China (PBOC) have not given a firm guidance.
Spot yuan changed hands at 6.1307 per dollar near midday, compared with Thursday's close of 6.1305 after the PBOC set Friday's midpoint at 6.1817, slightly weaker than Thursday's 6.1778.
Dealers predict the yuan will move in a tight range between 6.13/14 in the near term, as the government moves to hold the currency relatively stable in order to avoid undermining export competitiveness as China's economic growth slows.
Domestic yuan/dollar derivative markets now imply that the yuan will remain largely stable for the rest of this year, traders said.
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