China's yuan inched up against the dollar on Wednesday after the central bank set the official guidance rate at a one-week high, but traders said strong corporate dollar purchases in the morning capped the currency's gains. "Despite the much firmer midpoint, corporates still have strong dollar demand, highlighting the downward pressure the yuan is facing," said a trader at an Asian bank in Shanghai.
The People's Bank of China (PBOC) set the midpoint rate 0.05 percent firmer than the previous fix at 6.1168 per dollar prior to market open. The spot yuan opened at 6.2082 per dollar and was changing hands at 6.2091 at midday, up only 0.01 percent from the previous close.