The Chinese yuan ended up against the dollar on Wednesday after the US dollar index hovered around one-year lows as a broad sell-off gathered steam with investors moving to riskier assets amid growing signs of an economic recovery. The dollar index fell 0.40 percent to 76.242 in early European trade, near a one-year low of 76.187. The index has shed more than two percent this month.
Spot yuan closed at 6.8258 on Wednesday, up from Tuesday's close of 6.8289. Before trade began, the Chinese central bank set the yuan's daily mid-point at 6.8281 versus the dollar, up slightly from Tuesday's reference rate of 6.8284. "The dollar's global decline led the yuan up slightly today, but the yuan's real appreciation may still take some time," said a dealer at a European bank in Shanghai.
Bank for International Settlements (BIS) issued the data on Wednesday which showed the yuan's nominal effective exchange rate (NEER), its value against a trade-weighted basket of currencies, fell 0.78 percent in August, apparently due to the dollar's global weakness.