China's yuan ended up slightly on Wednesday after the central bank fixed the mid-point at a record high level in the run-up to a US Senate debate on a currency bill next week. The yuan closed at 6.3938 versus the dollar, stronger than Tuesday's 6.3992, but far below Wednesday's mid-point of 6.3623, the highest since Beijing revalued its currency in 2005.
The People's Bank of China has shown strong intentions to guide the yuan higher by fixing the mid-point at record high levels so far this week, as the US Senate plans to vote on legislation to crack down on China's currency practices. Sudden selling pushed offshore yuan weaker to 6.4430 on Wednesday. Offshore, the one-year dollar/yuan non-deliverable forwards (NDFs) ended up at 6.3640, compared with the previous close of 6.3770.
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