China's yuan rose against the dollar on Wednesday though the central bank set the official midpoint a shade lower than the previous day. The People's Bank of China (PBOC) fixed the midpoint at 6.1269 per dollar, slightly down from Tuesday's 6.1256.
Spot yuan changed hands at 6.2079 near midday, up 0.08 percent from Tuesday's close at 6.2130. It traded at a narrow range between 6.2063 and 6.2141 in morning trade.
"Demand to sell dollars is still strong today," said a trader at a Chinese bank in Shanghai, adding that the bid and ask price gap was wide due to cautious market sentiment. A slowing down economy is fueling expectations of more policy easing measures this year, which in turn will keep downward pressure on the yuan.
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