The yuan ended up slightly versus the dollar on Tuesday after China's central bank set a slightly stronger mid-point as the dollar hovered near eight-month lows against a basket of currencies. Before trading started on Tuesday, the People's Bank of China fixed the yuan's daily mid-point versus the dollar at 6.7051, up modestly from Monday's 6.7098, when it unexpectedly lowered its fixing after nine sessions of stronger mid-points.
Spot yuan finished at 6.6906 against the dollar from Monday's close of 6.6923. Beijing may allow the yuan to trade within a small range for now after allowing it to rise about 2 percent since the depegging in late-June, traders said. Yuan non-deliverable forwards rose across the curve, with the benchmark one-year dollar/yuan non-deliverable forwards last traded at 6.5770 versus Monday's close of 6.5610. That implied yuan appreciation of 1.95 percent in a year's time, down from Monday's 2.27 percent The Chinese foreign exchange market will be shut again for the week-long National Day holiday which begins on Friday.
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