China's yuan edged up against the US dollar on Tuesday, supported by a slightly firmer official midpoint, but gains were capped on rising corporate demand for the greenback. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.3386 per dollar, 45 pips or 0.07 percent firmer than Monday's previous fix of 6.3431.
In the spot market, the onshore yuan opened at 6.3352 per dollar and was changing hands at 6.3404 at midday, 15 pips firmer than the previous late session close but 0.03 percent weaker 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 96.85, weaker than the previous day's 96.97.
The offshore yuan was trading 0.01 percent firmer than the onshore spot at 6.3395 per dollar. Offshore one-year non-deliverable forwards contracts (NDFs), considered the best available proxy for forward-looking market expectations of the yuan's value, traded at 6.467, 1.99 percent weaker than the midpoint.
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