Spot yuan closed up against the dollar on Thursday after an incorrect fixing prompted some speculation that Beijing may be preparing for another revaluation in the Chinese currency. In just several minutes, the China Foreign Exchange Trade System (CFETS) revised the mid-point set by the People's Bank of China to 6.6695 to the dollar from the initial incorrect posting of 6.6495, which was a record high, before the market opened.
But offshore dollar/yuan forwards rebounded to imply less yuan appreciation as investors avoided positioning aggressively on one side ahead of weekend meetings of G20 finance ministers in Gyeongju, South Korea. The yuan closed at 6.6504 against the dollar, up from Wednesday's close of 6.6519 and far stronger than the official corrected yuan mid-point of 6.6695. Offshore, benchmark one-year dollar/yuan non-deliverables NDFs rebounded to 6.4245 in late trade from an early low of 6.4000, with their implied yuan appreciation in a year's time dropping to 3.81 percent from 4.21 percent.