SHANGHAI: The yuan headed for its longest string of monthly gains against the dollar in four years on Friday, even as traders turned more cautious about taking the Chinese currency higher amid signs the central bank wants to cool its advance.
The onshore yuan edged up less than 0.1 percent to 7.0756 per dollar as of 0415 GMT, keeping it on course for a 0.6 percent appreciation for November, which would be a fourth straight monthly rise. The yuan touched a 13-month peak of 7.0738 on Thursday before pulling back.
Its offshore counterpart traded at 7.0712 per dollar, and was also on track for a fourth consecutive monthly increase.
Prior to the market open, the People’s Bank of China (PBOC) set the official midpoint rate at 7.0789 per dollar, 20 pips weaker than a Reuters’ estimate of 7.0769. It was the second day in a row that the central bank’s official guidance was weaker than market projections.