HONG KONG: China’s yuan held steady against the dollar on Thursday, with traders eyeing this week’s US jobs report while Beijing signalled continued tolerance for a firmer currency.
The yuan was 0.02 percent lower at 7.1432 by 0315 GMT after trading in a tight range.
Its offshore counterpart traded at 7.142 yuan per dollar, down about 0.04 percent in Asian trade.
The currency has been trading sideways after hitting a 10-month high last Friday but is still 2.2 percent firmer this year against the greenback.
The dollar’s six-currency index was little changed on Thursday during a volatile week, as investors contended with bond market jitters while awaiting Friday’s payrolls report for further clues on the near-term rate outlook.
Traders are pricing in about a 97 percent chance of the Fed cutting interest rates later this month, up from 89 percent a week earlier, CME FedWatch showed.
Prior to the market opening, the People’s Bank of China set the midpoint rate at 7.1052 per dollar, 353 pips firmer than a Reuters’ estimate. It also marked the firmest level in nearly a week, just a whisker weaker than the 10-month high of 7.1030.
The spot yuan is allowed to trade 2 percent either side of the fixed midpoint each day.
Comments
Comments are closed for this article.