China's yuan rose on Thursday, following stronger guidance from the central bank after the dollar fell in overnight trade on policy jitters. The dollar index slid overnight as investors trimmed back long positions in the run up to the US July 4 holiday and payroll data on Friday, but it steadied in Asian trade. The spot yuan remained range bound on Thursday after opening at 6.1266 per dollar, up 0.07 percent from Wednesday's close.
The People's Bank of China set the midpoint at 6.1755 per dollar before market open, up 0.08 percent from Wednesday. Traders said the currency looks to remain stable for the time being after a massive rally that began in April appears to have wound down as bullish sentiment faded. The PBOC has traditionally fixed the yuan stronger in response to declines in the dollar, but the link has weakened this year as regulators have considered dramatic moves in the Japanese yen and domestic factors, including slowing export growth.
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