Spot yuan rose slightly against the dollar on Friday after the central bank set its daily mid-point marginally lower in line with the dollar's rise on global markets, reflecting Beijing's intention to keep the yuan stable for now. Dealers said the steady stance on the mid-point meant the People's Bank of China was not in a hurry to adjust its stable yuan policy, in place since July of last year to help cushion the impact of the global financial crisis on China's economy.
Spot yuan closed at 6.8285 against the dollar on Friday, slightly firmer than Thursday's close of 6.8292. Before trade began, the Chinese central bank fixed the yuan's daily mid-point at 6.8275 versus the dollar, slightly weaker than Thursday's reference rate of 6.8272.
"The most important problem for the central bank in setting a higher mid-point is weak exports," said a dealer at an Asian bank in Shanghai. "So now is not the time for yuan appreciation." Several dealers said any adjustment in yuan policy would have to wait until the beginning of next year.
Comments
Comments are closed.