China's yuan firmed on Wednesday as corporate dollar buying helped to offset a weaker guidance rate set by the central bank, indicating clients are inclined to hold more dollars, traders said. The People's Bank of China (PBOC) set the midpoint rate at 6.1125 per dollar prior to market open, 0.04 percent weaker than the previous fix of 6.1098, reflecting the strength of the greenback in global markets.
The spot market opened at 6.2069 per dollar and was changing hands at 6.2051 at midday, up 0.02 percent from the previous close. "The concern over the economy and the positive outlook of the dollar make clients more willing to buy dollars," said a trader at the European bank in Shanghai.
The dollar hit a two-month high against the yen on Wednesday, staying on firm footing after strong US housing data the previous day offered hopeful signs for the US economy's second-quarter growth. The offshore yuan was trading down 0.03 percent away from the onshore spot at 6.2068 per dollar.