The yuan closed little changed on the dollar on Monday as a sharp rebound in the US dollar index raised investor concerns over how much the People's Bank of China may allow the yuan to appreciate in the future. Before trading began, the PBOC fixed the yuan's daily mid-point versus the dollar at a record high but traders said the fixing was not a show of determination to let the yuan rise irregardless of global market conditions.
Spot yuan closed at 6.4939 versus the dollar, compared with Friday's close of 6.4938. It has appreciated 5.11 percent since it was depegged from the dollar in June 2010, and 1.47 percent since the start of this year. Offshore, one-year non-deliverable forwards (NDFs) were bid at 6.3460, down slightly from 6.3500 at the previous close. Their implied yuan appreciation in a year's time edged up to 2.40 percent from 2.34 percent.
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