The yuan hit a record high against the dollar on Friday even after the Chinese central bank set a weaker mid-point as traders said banks' clients were bidding for large amounts of yuan to meet month-end requirements, on expectations of a weak dollar.
Spot yuan hit at a record high of 6.4365 and closed at 6.4366, stronger than Thursday's 6.4428. It has now appreciated 6.05 percent since it was depegged from the dollar in June 2010 and 2.38 percent so far this year. In nominal terms, the yuan has risen 0.4 percent in July, higher than June and May's 0.2 percent, respectively. Offshore, benchmark one-year dollar/yuan non-deliverable forwards (NDFs) were bid at 6.3800 late on Friday, up slightly from 6.3770 at the previous day's close. Their implied yuan appreciation in a year's time fell slightly to 1.00 percent from 1.05 percent.
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