China's yuan closed slightly lower on Thursday after the People's Bank of China set the mid-point 114 pips weaker than the previous day's record high, the biggest fall in seven weeks, signalling its intention to keep a lid on yuan appreciation. Spot yuan closed at 6.3017 per dollar after hitting a record intraday high of 6.2919 on Wednesday. It has risen 8.32 percent since it was depegged in June 2010.
Before trading began, the PBOC fixed the dollar/yuan mid-point at 6.3115, down 0.18 percent from Wednesday's record high of 6.3001. The fall was the largest since November 15 when it dropped 149 points. The central bank uses the fixing to express the government's intention for the yuan's movements in a day.
But traders still foresee an around 3-percent rise in the yuan against the dollar as China faces US pressure to do more to rebalance bilateral and world trade, while it continues to record trade surpluses. Offshore, benchmark one-year non-deliverable forwards (NDFs) were little changed at 6.3400 late on Thursday against 6.3350 at the close on Wednesday.
Comments
Comments are closed.