China's yuan closed stronger against the US dollar on Thursday, but fears of central bank intervention kept the currency in a whisker-thin range throughout the session. The yuan ended at 8.1002 per dollar, up from Wednesday's 8.1005, after moving in an even tighter-than-normal four-tick range amid nervousness the central bank might act to cap the yuan's gains as the currency neared the crucial 8.10 level.
Some dealers thought the yuan could test 8.10 on Friday. And whether the central bank allows the currency to pierce that psychological ceiling, would be a litmus test for Beijing's tolerance going forward, they said.
Central bank vice governor Wu Xiaoling told Reuters on Thursday it would let the market decide the yuan's value and not act to strengthen it further, after Beijing had revalued the currency by 2.1 percent to 8.11 per dollar on July 21.
The yuan ended weaker against 100 yen at 7.3709 on Thursday from 7.3235 on Wednesday, and also weakened versus the euro at 9.9661 from 9.8721, according to the central People's Bank of China's Web site.
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