HONG KONG: China's yuan edged up against the dollar on Tuesday after a private survey showed China's services sector grew at its fastest pace in three months in December.
The People's Bank of China (PBOC) fixed the midpoint at 6.1256 per dollar, slightly softer than Monday's 6.1248. It was the weakest level in nearly a month.
Spot yuan changed hands at 6.2153 near midday, up 0.08 percent from Monday's close at 6.2200.
The HSBC/Markit Services Purchasing Managers' Index(PMI) picked up to 53.4 last month from November's 53.0, well above the 50-point level that separates growth from contraction in activity on a monthly basis.
Many economists, however, still expect more interest rate cuts as well as reductions in banks' reserve requirement ratios (RRR) this year, perhaps as soon as the first quarter.
The spot rate is currently allowed to trade 2 percent above or below the midpoint.
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