The yuan rose slightly versus the dollar on Wednesday even after the People's Bank of China set a weaker mid-point, as the Chinese currency's upward path appears intact amid volatility in the dollar while the United States struggles with its debt woes.
Spot yuan closed at 6.4341, slightly stronger than Tuesday's close of 6.4382. It has now appreciated 6.1 percent since it was depegged from the dollar in June 2010 and 2.42 percent so far this year. Before trade began the PBOC fixed the yuan's mid-point at 6.4441 against the dollar, weaker than Tuesday's 6.4419. Offshore, benchmark one-year dollar/yuan non-deliverable forwards (NDFs) were bid at 6.3710 in late trade, weaker than 6.3680 at the previous day's close. Their implied yuan appreciation in a year's time fell to 1.15 percent from 1.16 percent.
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