China's yuan was almost unchanged against the dollar on Friday, despite the central bank's weaker midpoint setting, which traders credited to reassurances President Xi Jinping gave on the health of the country' economy. The People's Bank of China (PBOC) set the midpoint rate at 6.3595 per dollar prior to market open, 0.15 percent weaker than the previous fix 6.3497. The spot market opened at 6.3600 per dollar and was changing hands at 6.3566 at midday, barely moved from the previous close.
If the spot yuan closes at the midday level, it will inch 0.07 percent weaker for the week. During his state visit to Britain, Xi said "there will be no hard landing" of the world's second-largest economy, though he acknowledged some downward pressure for it as well. Xi's comments and the outcome of his visit to Britain "helped reassure investors and stabilise the yuan," said a trader at a foreign bank in Shanghai. The offshore yuan was trading 0.46 percent weaker than the onshore spot at 6.3862 per dollar.
Comments
Comments are closed.