Spot yuan prices softened slightly on Thursday but still near a five-month high against the dollar, despite the central bank setting the dollar/yuan midpoint weaker for the third day in a row. The People's Bank of China (PBOC) fixed the yuan midpoint at 6.3459 prior to the market open, slightly weaker than Wednesday's fixing of 6.3443, after the dollar index moved upward in overnight trade.
Spot yuan softened against the dollar in the morning, but then firmed again over the afternoon to close at 6.3025, just five points weaker than Wednesday's close. Because Thursday's midpoint weakened, the spread between spot yuan and midpoint prices rose again, marking a new record divergence for the second straight day. The spot closed 434 points stronger than the midpoint, a divergence of 0.7 percent, up slightly from the closing spread on Wednesday.
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