Markets

Yuan closes flat, recovery in trading volume sustained

Published December 20, 2012 Updated December 20, 2012 09:55am

 

The yuan closed at 6.2302 per dollar, compared with 6.2303 at the end of Wednesday.

 

The central bank set its midpoint at 6.2877 per dollar compared to 6.2865 on Wednesday. The exchange rate is only allowed to diverge by 1 percent in either direction from the central bank's daily midpoint.

 

Market volumes remained healthy with more than $11 billion transacted by market close, down slightly from Wednesday.

 

Traders say supply and demand from corporates has remained relatively balanced this week in the absence of developments at home or abroad to give fresh direction.

 

The dollar index fell slightly overnight, remaining on the gradual downward trend it has been on since mid-November. Increasing optimism about economic recovery has pushed global forex investors into higher-yielding but riskier currencies, including the yuan.?Reuters

Center>Copyright Reuters, 2012