SHANGHAI: China's yuan held steady on Monday, with the market believing the central bank has achieved its unofficial yuan appreciation target for 2013 and will keep it stable till the year-end.
Spot yuan changed hands at 6.0713 yuan per dollar by midday, unchanged from Friday's close.
The People's Bank of China (PBOC) set its daily midpoint 0.06 percent stronger at 6.1161 but traders said the small change had little impact on trading.
The market believes that the PBOC has internal targets for annual yuan rises since the currency's landmark revaluation in 2005. That is to balance international pressure to let the yuan appreciate against the needs of domestic manufacturers who complain that it hurts export competitiveness.
"As the year-end nears, the potential for the yuan to rise sharply again is limited, given that the PBOC typically takes a gradualist approach to appreciation," said a trader at a Chinese commercial bank in Shanghai, adding that the market believes the yuan will hold near 6.07 through the year-end.
The yuan has risen 2.62 percent against the dollar so far this year.
Comments
Comments are closed for this article.