The yuan closed slightly higher against the dollar on Tuesday but finished the first half of the year little changed against the US currency as China maintained a stable currency amid the global economic crisis. Spot yuan ended at 6.8307 versus the dollar on Tuesday, up modestly from Monday's close of 6.8338, after the Chinese central bank set the yuan's daily mid-point at 6.8219, marginally above Monday's reference rate of 6.8216.
Its end-June value versus the dollar was little changed from 6.8230 at the end of last year, in stark contrast to its 6.56 percent appreciation in the first half of 2008, when China was using the yuan's rise to help cushion against imported inflation as goods prices surged.
Dealers said China was likely to keep the yuan stable in the third quarter, aiming to boost exports, but renewed surges in the global prices of oil and other staple commodities cast doubts on the currency's long-term prospects, possibly pointing to a stronger yuan in the fourth quarter.
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