The yuan ended little changed against the dollar on Tuesday as the government reaffirmed its commitment to a stable yuan policy, despite the dollar hovering just above a 15-month low against a basket of currencies as investors piled into leveraged carry trades.
The US dollar index, which tracks the performance of the dollar versus a basket of six other major currencies, was marginally firmer at 75.063 late on Tuesday after having dropped more than 1 percent the day before. It touched 74.930, its lowest since August 2008. Most Chinese economic data for October will be released on Wednesday. The market is awaiting the data for hints of possible changes to the country's monetary policy.
But dealers said assurances from various government officials that monetary policy would be kept loose could mean that the Chinese central bank will not let the yuan appreciate for now, regardless of the data. Spot yuan was virtually flat, closing at 6.8268 on Tuesday compared with Monday's close of 6.8272.