The yuan ended down on Thursday as the Chinese central bank reined in the yuan after a slight rebound in the dollar, sending another strong signal to the market that China would keep the yuan stable in the short term. The People's Bank of China's set its daily yuan mid-point, or its reference rate by which the yuan can only rise or fall 0.5 percent in a day.
At a lower 6.8280 against the dollar from Wednesday's 6.8271 after the US Federal Reserve said it would keep US interest rates at low levels for an extended period. The mid-point guided spot yuan to finish at 6.8272 on Thursday, down slightly from 6.8261 at the close on Wednesday, brushing aside the Fed's decision to hold its benchmark overnight lending rates at close to zero percent. "The PBOC rushed into sending a signal that it would not change its stable yuan policy for now, possibly to offset the impact of the Fed's statement on the yuan," said a dealer at a major European bank in Shanghai.