The yuan ended down against the dollar on Thursday after the People's Bank of China set a weaker mid-point as the dollar held near three-week highs. Dealers said spot yuan would meet resistance at 6.49 for now, before the central bank sends a strong signal allowing the mid-point to breach this level.
Spot yuan closed at 6.5000 versus the dollar, compared with Wednesday's close of 6.4930. It has appreciated 5.02 percent since it was depegged from the dollar in June 2010, and 1.36 percent since the start of this year. Before trade began, the PBOC set the yuan's daily mid-point at 6.5005 against the dollar, weaker than Wednesday's 6.4948. The central bank uses the mid-point to express the governments' intention for the yuan's movements. Offshore, one-year non-deliverable forwards (NDFs) were bid at 6.3660, up from 6.3435 at Wednesday's close. Their implied yuan appreciation in a year's time was down to 2.11 percent from 2.47 percent.