China's yuan barely moved against the dollar on Friday and was set to end this week flattish, with dealers slightly reducing bearish positions against the yuan and the central bank keeping daily guidance rates in a tight range. "Trading was relatively tepid this week as the spot rate barely moved," said a trader at a Chinese city bank in Shanghai. "Trading volume averaged around $15 billion this week."
Daily trading volume stayed above $20 billion last week and once touched $38 billion on January 7. The People's Bank of China set the midpoint rate at 6.5572 per dollar prior to market open, only 0.02 percent firmer than the previous fix at 6.5585. The guidance rate was kept within a tight range of 25 pips over the past week.
The spot market opened at 6.5797 per dollar and was changing hands at 6.5800 at midday, almost unchanged from the previous close. On Friday, the offshore yuan was trading at 6.6110 per dollar, 0.47 percent softer than onshore. Traders said the spread between the onshore and offshore markets was "acceptable". The onshore yuan strengthened 0.5 percent against the euro to 7.1368. It also firmed 0.8 percent against the Japanese yen, hovering at 5.5855 to 100 yen.
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