The yuan closed down slightly against the dollar on Wednesday, hovering near its limit-down level from the mid-point fixed by the People's Bank of China, but it has still risen slightly so far this month, buoyed by a slew of strong PBOC fixings.
Spot yuan closed at 6.3706 against the dollar, having hit its daily limit-down level of 6.3713 from the PBOC's fixing in intraday trading, down from 6.3652 at Tuesday's close.
The yuan has risen as much as 4.01 percent from the start of this year to mid-November; it has still risen 3.44 percent so far this year. Offshore, however, benchmark one-year dollar/yuan non-deliverable forwards (NDFs) have largely been forecasting yuan depreciation in a year's time since late September, reversing a general trend of appreciation since the yuan's revaluation in July 2005. One-year NDFs rose slightly to 6.4390 on Wednesday against 6.4300 at the close on Tuesday, implying that the yuan will depreciate 1.54 percent in 12 months from Wednesday's PBOC mid-point.
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