The yuan slipped versus the dollar on Thursday as the central bank fixed a slightly weaker mid-point, to the disappointment of the market that had expected another record high. Spot yuan closed at 6.3900 per dollar, compared with 6.3885 at Wednesday's close. It has now appreciated 6.82 percent since it was depegged from the dollar in June 2010 and 3.12 percent so far this year.
Before trading began, the PBOC fixed the mid-point at 6.3936, slightly weaker than Wednesday's record high of 6.3896. The fixing is the central bank's base rate from which the yuan can move 0.5 percent in either direction and expresses the government's intention of how the yuan should move. Offshore, the one-year dollar/yuan non-deliverable forwards (NDFs) were bid at 6.2920 in late trade, up from 6.2830 at Wednesday's close, with their implied yuan rise in a year's time falling to 1.61 percent from 1.76 percent.
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