SHANGHAI: China's yuan snapped an eight-day losing streak against the dollar on Tuesday and edged up after the central bank set the official guidance rate higher.
"Some companies sold dollars in early trade, and that pushed up the rate a little bit, but the dollar supply and demand quickly came to a rough balance," said a trader at a Chinese city commercial bank in Shanghai.
The People's Bank of China (PBOC) set the midpoint rate at 6.1155 per dollar prior to market open, firmer than the previous fix 6.1169.
The spot market opened at 6.2077 per dollar and was changing hands at 6.2080 at midday, up 0.02 percent from the previous close.
Traders said investor appetite for trading dollars has eased off recently as many were drawn to China's red-hot stock market.
The offshore yuan was trading 0.04 percent weaker than the onshore spot at 6.2106 per dollar.
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