China's yuan was flat against the US dollar on Tuesday in thin trade, with market participants awaiting the outcome of a landmark meeting between the United States and North Korea. US President Donald Trump said he had forged a "good relationship" with North Korean leader Kim Jong Un at the summit in Singapore, while Kim said the meeting was "a good prelude to peace". But there was no immediate word on any substantive progress in their discussions.
Yuan trading was subdued after the central bank set weaker daily guidance, and the spot rate traded in a wafer-thin range of about 60 pips, with investors mostly reluctant to take bets. Prior to market opening, the People's Bank of China set the midpoint rate at 6.4121 per dollar, 57 pips weaker than the previous fix of 6.4064. In the spot market, the onshore yuan opened at 6.4090 per dollar and was changing hands at 6.4041 at midday, only 6 pips stronger than the previous late session close.
The offshore yuan was trading 0.06 percent stronger than the onshore spot at 6.4003 per dollar as of midday. The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, stood at 98.14, firmer than the previous day's 98.03. The global dollar index rose to 93.735 from the previous close of 93.576.
Comments
Comments are closed for this article.