AIRLINK 60.45 Decreased By ▼ -0.52 (-0.85%)
BOP 6.32 Increased By ▲ 0.03 (0.48%)
CNERGY 4.39 Increased By ▲ 0.06 (1.39%)
DFML 16.00 Increased By ▲ 0.14 (0.88%)
DGKC 69.01 Decreased By ▼ -0.29 (-0.42%)
FCCL 18.09 Decreased By ▼ -0.11 (-0.6%)
FFBL 26.24 Decreased By ▼ -0.01 (-0.04%)
FFL 9.34 Increased By ▲ 0.11 (1.19%)
GGL 10.24 Decreased By ▼ -0.01 (-0.1%)
HBL 115.42 Decreased By ▼ -1.58 (-1.35%)
HUBC 116.06 Increased By ▲ 1.58 (1.38%)
HUMNL 7.03 Increased By ▲ 0.10 (1.44%)
KEL 5.02 Increased By ▲ 0.13 (2.66%)
KOSM 5.68 Increased By ▲ 0.35 (6.57%)
MLCF 38.72 Increased By ▲ 0.22 (0.57%)
OGDC 132.17 Increased By ▲ 8.20 (6.61%)
PAEL 21.76 Decreased By ▼ -0.09 (-0.41%)
PIAA 12.80 Increased By ▲ 1.00 (8.47%)
PIBTL 6.10 No Change ▼ 0.00 (0%)
PPL 119.87 Increased By ▲ 6.12 (5.38%)
PRL 28.17 Decreased By ▼ -0.13 (-0.46%)
PTC 12.08 Increased By ▲ 0.63 (5.5%)
SEARL 51.80 Decreased By ▼ -0.50 (-0.96%)
SNGP 68.77 Increased By ▲ 1.07 (1.58%)
SSGC 11.46 Increased By ▲ 0.13 (1.15%)
TELE 8.19 Increased By ▲ 0.34 (4.33%)
TPLP 11.53 Decreased By ▼ -0.05 (-0.43%)
TRG 72.75 Increased By ▲ 0.94 (1.31%)
UNITY 23.62 Increased By ▲ 0.52 (2.25%)
WTL 1.37 Increased By ▲ 0.08 (6.2%)
BR100 6,790 Increased By 72.9 (1.09%)
BR30 23,078 Increased By 560.6 (2.49%)
KSE100 65,952 Increased By 626 (0.96%)
KSE30 22,417 Increased By 271.6 (1.23%)

SHANGHAI: China’s yuan held steady against the dollar on the first trading day after the Golden Week holiday, underpinned by a stronger-than-expected official guidance fix, while investors worried about the impact of a firming greenback.

The setting of the onshore fix would be closely watched following the end of China’s Golden Week, said Paul Mackel, global head of FX research at HSBC.

Prior to the market opening, the People’s Bank of China (PBOC) set the midpoint rate, around which the yuan is allowed to trade, in a 2% band at 7.1789 per US dollar, 9 pips firmer than the previous fix of 7.1798, and 1156 pips firmer than Reuters estimate of 7.2945.

The spot yuan opened at 7.3050 per dollar and was changing hands at 7.2958 at midday, only 7 pips firmer than the previous late session close.

Higher-for-longer US interest rates, which are buoying the dollar, are becoming a big challenge for the PBOC and have triggered concern about when the PBOC might allow the yuan to weaken gradually, analysts at Goldman Sachs wrote in a note.

“In our view, it is important to watch out for both the duration of USD strength and the divergence between CFETS RMB index and USDCNY spot,” the analysts said.

Reuters estimates the RMB CFETS basket index, a gauge that measures the yuan’s strength versus a basket of currencies, edged up on Monday, hitting a five-month high of 99.67.

China finance ministry to auction 115bn yuan 5-year bonds Friday

The global dollar index rose to 106.248 from the previous close of 106.044.

The offshore yuan was trading 11 pips weaker than the onshore spot at 7.2969 per dollar.

Comments

200 characters