The yuan closed slightly weaker against the dollar on Monday, propelled by temporary corporate dollar demand in the afternoon session, traders said. The benchmark Reuters Jefferies CRB index , which covers 19 mostly US-traded commodities, has leapt 48 percent since June last year, while China is the world's fastest growing market for staple goods.
Spot yuan closed at 6.5383 against the dollar, down from Friday's close of 6.5354 but still within arm's reach of its all-time high of 6.5350 hit in intraday trading on Friday. The currency has now risen 4.40 percent since it was depegged in June 2010, and 0.78 percent so far this year.
Before trading began, the PBOC fixed the yuan's mid-point at a record high of 6.5401, the sixth straight trading day that the fixing was set at a record high and up from Friday's historical peak of 6.5420. Offshore, one-year non-deliverable forwards were bid at 6.3750 in late trade, up from 6.3680 at the previous close. Their implied yuan rise in a year's time fell to 2.58 percent compared with 2.70 percent.