AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 129.06 Decreased By ▼ -0.47 (-0.36%)
BOP 6.75 Increased By ▲ 0.07 (1.05%)
CNERGY 4.49 Decreased By ▼ -0.14 (-3.02%)
DCL 8.55 Decreased By ▼ -0.39 (-4.36%)
DFML 40.82 Decreased By ▼ -0.87 (-2.09%)
DGKC 80.96 Decreased By ▼ -2.81 (-3.35%)
FCCL 32.77 No Change ▼ 0.00 (0%)
FFBL 74.43 Decreased By ▼ -1.04 (-1.38%)
FFL 11.74 Increased By ▲ 0.27 (2.35%)
HUBC 109.58 Decreased By ▼ -0.97 (-0.88%)
HUMNL 13.75 Decreased By ▼ -0.81 (-5.56%)
KEL 5.31 Decreased By ▼ -0.08 (-1.48%)
KOSM 7.72 Decreased By ▼ -0.68 (-8.1%)
MLCF 38.60 Decreased By ▼ -1.19 (-2.99%)
NBP 63.51 Increased By ▲ 3.22 (5.34%)
OGDC 194.69 Decreased By ▼ -4.97 (-2.49%)
PAEL 25.71 Decreased By ▼ -0.94 (-3.53%)
PIBTL 7.39 Decreased By ▼ -0.27 (-3.52%)
PPL 155.45 Decreased By ▼ -2.47 (-1.56%)
PRL 25.79 Decreased By ▼ -0.94 (-3.52%)
PTC 17.50 Decreased By ▼ -0.96 (-5.2%)
SEARL 78.65 Decreased By ▼ -3.79 (-4.6%)
TELE 7.86 Decreased By ▼ -0.45 (-5.42%)
TOMCL 33.73 Decreased By ▼ -0.78 (-2.26%)
TPLP 8.40 Decreased By ▼ -0.66 (-7.28%)
TREET 16.27 Decreased By ▼ -1.20 (-6.87%)
TRG 58.22 Decreased By ▼ -3.10 (-5.06%)
UNITY 27.49 Increased By ▲ 0.06 (0.22%)
WTL 1.39 Increased By ▲ 0.01 (0.72%)
BR100 10,445 Increased By 38.5 (0.37%)
BR30 31,189 Decreased By -523.9 (-1.65%)
KSE100 97,798 Increased By 469.8 (0.48%)
KSE30 30,481 Increased By 288.3 (0.95%)

China's yuan rose against the dollar on Tuesday after the central bank set its daily reference rate at a higher level, signalling it did not want a downtrend in the Chinese currency. Despite a substantial gain by the US Dollar Index on Monday, the Chinese central bank set the yuan's mid-point against the dollar at 6.8399 before trade began on Tuesday, up from Monday's 6.8455.
That helped push up the yuan to a high of 6.8380 in early trade, and it closed at 6.8381, well above its previous finish of 6.8433. "Even though yuan appreciation has slowed down significantly in the past few months under the guidance of the central bank, the central bank is apparently not ready to see depreciation," said a trader with a major European bank in Shanghai.
One-year offshore dollar/yuan non-deliverable forwards fell slightly to 6.7550 in late trade from 6.7740 at Monday's finish. Their latest level implied yuan appreciation of 1.26 percent against the dollar in the next 12 months from the day's spot mid-point, up from 1.06 percent on Monday.
After soaring early this month as the market scaled back expectations for long-term yuan appreciation, NDFs have largely moved sideways for the past few days, suggesting the market has become comfortable with levels of implied 12-month appreciation between about 0.5 and 1.5 percent. One-year dollar/yuan volatilities, at 7.90 percent bid late on Tuesday, have dropped back from a multi-year closing high of 8.45 percent hit last Wednesday, indicating uncertainty over the yuan's trend has partially eased.

Copyright Reuters, 2008

Comments

Comments are closed.