China's yuan eased to close at 8.0765 to the dollar on Wednesday after remarks of a senior economist helped cool speculation. The yuan, which was revalued by 2.1 percent on July 21 to 8.11 per dollar, ended 0.03 percent lower from Tuesday's close of 8.0740. It has still appreciated another 0.41 percent since the policy move.
The yuan, also known as renminbi, hit a post-revaluation closing high of 8.0730 on Monday and it began to slide on Tuesday after Beijing said it would not alter currency policy.
On Wednesday, Xia Bin, a senior economist of a cabinet-backed think-tank, said in state newspapers that China should not widen the yuan's trading band until firms and banks have got used to managing the risks that come with a floating currency.
Xia's comments, in line with recent official remarks on the yuan made by regulators and government officials, helped cool speculation, dealers said.
"The market has been affected."
Some dealers also cited the Christmas and New Year holiday season as part of the reason for the less speculative mood.
On Wednesday, the yuan strengthened against the euro to 9.5877 versus 9.6766 on Tuesday, and firmed against 100 yen to 6.8984 versus 6.9081.
One-year onshore forwards were quoted at 7.78 per dollar on Wednesday, anticipating that the yuan would be 3.8 percent stronger in a year's time. Two deals were done but not in the one-year contract.
Comments
Comments are closed.