The yuan closed higher after hitting a fresh post-revaluation high against the dollar on Tuesday, with Beijing seen conceding to let the yuan rise as US lawmakers call for a vote on a bill to get tough with China over its slow exchange rate reform. The People's Bank of China fixed the yuan's mid-point to the dollar at its highest level since the yuan's landmark revaluation in July 2005.
The yuan has risen 0.8 percent in four trading days as measured by the fixing, the biggest four-day gain since records of the reference rate started to be kept in 2007. The PBOC set the mid-point, or its reference rate from which the yuan can rise or fall 0.5 percent each day, at 6.7378 on Tuesday, up from Monday's 6.7509.
That guided spot yuan to close at 6.7463 after touching a post-revaluation high of 6.7435, up from Monday's close of 6.7618 and rising 1.18 percent since the mid-June depegging. The yuan has now appreciated 20.21 percent against the dollar on top of a 2.1 percent revaluation in July 2005. Offshore dollar/yuan forwards (NDFs) fell nearly across the curve on Tuesday in response to the PBOC's high mid-point, with trading concentrating in the short end. Three-month dollar/yuan non-deliverable forwards (NDFs) fell to 6.7239 bid in late trade from Monday's close of 6.7394, implying yuan appreciation of 0.21 percent.
Comments
Comments are closed.