China's yuan edged higher after the Chinese central bank set a slightly stronger mid-point on Wednesday and as the dollar index eased in global markets. But dealers said the firmer yuan did not signify any shift in policy for now.
"The stable trend has not changed," said a dealer at a Chinese bank in Shenzhen. "The narrow trade in spot yuan also shows the market doesn't expect a sharp rise in the currency." The yuan is widely expected to remain stable for the rest of this year and will move in a narrow range of about 200 pips around 6.6500 in coming weeks.
Spot yuan closed at 6.6461 versus the dollar, rising from Tuesday's close of 6.6589. It has risen 2.71 percent since the PBOC announced a depegging in mid-June.
Before trade began, the PBOC set the day's mid-point at 6.6548, which was slightly stronger than Tuesday's 6.6597. The mid-point is a level from which the yuan may rise or fall 0.5 percent against the dollar on a given day. Offshore, one-year NDFs were bid at 6.5047, little changed from Tuesday's close of 6.5070.
Comments
Comments are closed.