China's yuan closed stronger at 8.1070 per dollar on Tuesday, as dealers said the selling pressure that had pushed the currency to its original revaluation level of 8.11 on Monday had eased. The currency was likely to post small gains this week, dealers said, as it rallies from its close of 8.1090 on Monday.
It opened at a similar level on Tuesday and moved in the narrow range of 8.1090 and 8.1070 in fairly inactive trade, dealers said.
"Trade was subdued. We didn't see the sell orders that we saw on Monday, and that helped the currency off the 8.11 level," said a dealer at a foreign bank.
The yuan closed weaker against the euro at 10.0363 against Monday's 9.9937, and softened to 7.2493 against 100 yen versus 7.2243. The yuan's gain against the dollar came after a senior US Treasury official said China was likely to continue to move toward greater currency flexibility after taking the "significant step" of breaking its peg to the dollar.
China revalued the yuan by 2.1 percent to 8.11 to the dollar on July 21, abandoning a decade-old peg to the US dollar and saying it would manage the yuan with reference to a basket of currencies.
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