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The yuan closed slightly weaker against the dollar on Wednesday as the central bank set its mid-point slightly weaker ahead of a visit to China by US Vice President Joe Biden this week and after the fixing hit a record high for the past five sessions. Spot yuan closed at 6.3871 per dollar, slightly weaker than 6.3828 at the close on Tuesday when it also hit an all-time high of 6.3820 in intraday trading.
It has now appreciated 6.87 percent since it was depegged from the dollar in June 2010 and 3.17 percent so far this year. Offshore, the benchmark one-year dollar/yuan non-deliverable forwards (NDFs) were bid at 6.2810 in late trade, up from 6.2720 at Tuesday's close. The implied yuan rise in a year's time fell to 1.88 percent from 2.03 percent.

Copyright Reuters, 2011

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