China's yuan pulled back from its strongest in nine-and-a-half months on Wednesday, after the central bank lowered its official guidance following a modest bounce in the dollar. The People's Bank of China set the midpoint rate at 6.7205 per dollar prior to market open, weaker than the previous fix 6.7148.
In the spot market, the yuan opened at 6.7258 per dollar and was changing hands at 6.7263 by midday, easing off its best levels since October struck on Tuesday. The renminbi is 53 pips weaker than the previous late session close and 0.09 percent softer than the midpoint.
The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, stood at 93.83, firmer than the previous day's 93.77. The global dollar index rose to 93.071 from the previous close of 93.043. The offshore yuan was trading 0.09 percent weaker than the onshore spot at 6.7326 per dollar. One-year NDFs are settled against the midpoint, not the spot rate.
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