China's central bank nudged its daily yuan mid-point, or reference rate against the dollar, marginally lower on Wednesday, pushing spot yuan down slightly following another jump in the US currency in global markets. The People's Bank of China (PBOC) set the yuan's mid-point at 6.8278 compared with Tuesday's 6.8276 while the dollar index hit a fresh 14-month high against a basket of six major global currencies, dominated by the euro.
Spot yuan traded in a range of 6.8273 to 6.8282, slightly weaker than Tuesday's 6.8269 to 6.8279. It closed flat at 6.8274. The PBOC has held the yuan around 6.83 per dollar, in a range of around 100 pips since mid-2008, to protect the economy as it confronted a slowdown due to the global financial crisis.
Benchmark one-year dollar/yuan non-deliverable forwards (NDFs) rose to 6.7090 in late trade from Tuesday's close of 6.6790, implying a 12-month yuan appreciation of 1.77 percent, down from 2.22 percent implied on Tuesday. And three-month NDFs advanced to 6.7775 from 6.7650, with implied yuan appreciation in three months falling to 0.74 percent from 0.93 percent, as measured from the yuan's spot mid-point.
Comments
Comments are closed.