China's yuan firmed against the US dollar on Wednesday as the global dollar index sank with Republican Donald Trump edging ahead in the US presidential election. Traders say the yuan market is closely following the move of the dollar and they seeking to control risks. The People's Bank of China set the midpoint rate at 6.7832 yuan per dollar prior to market open, weaker than the previous fix at 6.7817 yuan.
The spot market opened at 6.7846 yuan per dollar and was changing hands at 6.7711 at midday, putting the yuan 127 pips stronger than the previous late session close and 0.18 percent stronger than the midpoint. The global dollar index fell to 96.748 from the previous close of 97.861. The offshore yuan fell to fresh six-year lows and broke through 6.8 per dollar in early trade, but quickly regained ground as the dollar declined. The offshore yuan was trading 0.14 percent weaker than the onshore spot at 6.7805 per dollar. Offshore one-year non-deliverable forwards contracts (NDFs), considered the best available proxy for forward-looking market expectations of the yuan's value, traded at 6.943, putting the yuan 2.30 percent weaker than the midpoint.
Comments
Comments are closed.