The yuan ended up versus the dollar on Monday after the People's Bank of China set a higher mid-point in the wake of a weak US Dollar Index. The yuan had risen before the US Senate granted approval to a bill aimed at pressing China to let the yuan appreciate faster on October 11.
Spot yuan finished at 6.3754 versus the dollar, up from Friday's close of 6.3840. It has risen 3.36 percent so far this year and 7.07 percent since it was depegged from the dollar in June 2010. Before trading began, the PBOC set the mid-point of the day at 6.3549, stronger than Friday's 6.3628. The central bank uses the fixing to signal the government's intentions for the yuan.
China had let the yuan rise as much as 4 percent versus the dollar from the beginning of this year to Tuesday October 11 - just ahead of the US Senate's approval of its yuan bill. Offshore, one-year dollar/yuan non-deliverable forwards (NDFs) were bid at 6.4050 in late trade, down slightly from 6.4080 at the close on Friday. They implied yuan depreciation of 0.79 percent in 12 months from Friday's PBOC mid-point, compared with depreciation of 0.84 percent they implied on Friday.
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