AGL 40.00 Decreased By ▼ -0.01 (-0.02%)
AIRLINK 127.00 Decreased By ▼ -0.99 (-0.77%)
BOP 6.68 Increased By ▲ 0.08 (1.21%)
CNERGY 4.49 Decreased By ▼ -0.11 (-2.39%)
DCL 8.60 Increased By ▲ 0.12 (1.42%)
DFML 41.30 Decreased By ▼ -0.18 (-0.43%)
DGKC 86.71 Increased By ▲ 0.13 (0.15%)
FCCL 32.16 Increased By ▲ 0.02 (0.06%)
FFBL 64.70 Decreased By ▼ -0.72 (-1.1%)
FFL 10.29 Increased By ▲ 0.04 (0.39%)
HUBC 109.51 Decreased By ▼ -0.98 (-0.89%)
HUMNL 14.90 Increased By ▲ 0.15 (1.02%)
KEL 5.05 Decreased By ▼ -0.08 (-1.56%)
KOSM 7.40 Increased By ▲ 0.28 (3.93%)
MLCF 41.39 Decreased By ▼ -0.26 (-0.62%)
NBP 60.60 Increased By ▲ 0.51 (0.85%)
OGDC 190.00 Decreased By ▼ -4.69 (-2.41%)
PAEL 27.81 Decreased By ▼ -0.14 (-0.5%)
PIBTL 7.75 Decreased By ▼ -0.25 (-3.13%)
PPL 149.75 Decreased By ▼ -1.42 (-0.94%)
PRL 26.73 Decreased By ▼ -0.15 (-0.56%)
PTC 16.18 Increased By ▲ 0.18 (1.13%)
SEARL 86.02 Increased By ▲ 7.82 (10%)
TELE 7.72 Increased By ▲ 0.33 (4.47%)
TOMCL 35.58 Decreased By ▼ -0.09 (-0.25%)
TPLP 8.14 Increased By ▲ 0.23 (2.91%)
TREET 16.51 Increased By ▲ 0.62 (3.9%)
TRG 53.35 Increased By ▲ 0.59 (1.12%)
UNITY 26.28 Decreased By ▼ -0.27 (-1.02%)
WTL 1.26 Decreased By ▼ -0.01 (-0.79%)
BR100 9,889 Decreased By -31.1 (-0.31%)
BR30 30,611 Decreased By -140.9 (-0.46%)
KSE100 93,355 Increased By 130.9 (0.14%)
KSE30 28,931 Increased By 46 (0.16%)

SHANGHAI: China's yuan was little changed against the dollar in thin trade on Friday, as many overseas markets have entered Christmas holidays and an extended long weekend.

Before the market opened, the People's Bank of China (PBOC) set the midpoint rate at 6.3692 per dollar, 41 pips weaker than the previous fix of 6.3651. That was 31 pips softer than Reuters' estimate of 6.3661.

In the spot market, the onshore yuan opened at 6.3730 per dollar and was changing hands at 6.3700 at midday, 5 pips weaker than the previous late-session close.

The spot yuan swung in a range of about 30 pips on Friday morning, while trading volume shrunk to $10.6 billion from a normal half-day volume of about $15 billion.

Several market participants said trading was slow, as many of their peers have already gone on year-end holidays, while overseas markets also lacked clear guidance.

Although the yuan is on course for a marginal weekly gain against the dollar, a trader at a Chinese bank said markets are anticipating some FX policy tweaks in the new year, especially after Premier Li Keqiang's comments on growing uncertainties in China's foreign trade.

The latest state council meeting also reiterated that the yuan exchange rate will be kept basically stable, and banks are encouraged to conduct deals in the forward market to help exporters better cope with currency fluctuations risks.

"We expect China to implement proactive fiscal policy and prudent monetary policy with a loosening bias next year, while keeping the yuan exchange rate basically stable at a reasonable and balanced level to revive and sustain economic growth," said Gao Qi, FX strategist at Scotiabank.

He maintains his short USD/CNH spot position, with a target of 6.30 per dollar and a trailing stop of 6.42.

By midday, the broad dollar index fell to 96.044 from the previous close of 96.104, while the offshore yuan was trading at 6.3757 per dollar.

Comments

Comments are closed.