The yuan closed lower against the dollar but rose versus the euro on Monday, guided by the People's Bank of China as the Chinese central bank steered the yuan in relation to a basket of currencies. The central bank set the yuan's mid-point, or its reference rate, down against the dollar at 6.8064 from Friday's 6.8035, but up versus the euro.
The PBOC has guided the yuan down against the dollar for the past week since the yuan hit an intraday high of 6.7644 last Monday, its strongest since the landmark July 2005 yuan revaluation. At the high, the yuan had appreciated as much as 0.91 percent against the dollar since the central bank announced a depegging of the Chinese currency to the dollar on June 19, but it has now appreciated only 0.26 percent since the depegging.
The dollar index has fallen 3.6 percent since the Chinese depegging. Spot yuan closed at 6.8082 versus the dollar on Monday, down from Friday's close of 6.7957. It finished slightly up at 8.7012 against the euro from Friday's 8.7285. Benchmark dollar/yuan NDFs were quoted at 6.6920 bid from Friday's close of 6.6900, with their implied 12-month yuan appreciation little changed at 1.71 percent from Friday's 1.70 percent.
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