"In general, we believe the yuan will remains strong against the dollar this year, but the size of appreciation won't be as huge as last year," Wang said.
Yields in 10-year bonds were one basis point higher at 1.78%. They reached a 23-month high of 1.97% on Feb. 26 on bets of rate hikes as early as next year. Bond futures were also stable at 98.229.
Speculators cut their net short dollar positions in the latest week to $27.80 billion, which is the smallest short position since Dec. 15 and suggests that dollar bears are giving up on betting against the greenback.
Support is at 3,624 ringgit, a break below which could cause a fall into the 3,466-3,545 ringgit range. On the daily chart, the contract may break a resistance at 3,581 ringgit, following its failure on Feb. 15.
The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, stood at 96.8, weakening from the previous day's 96.85.