The yuan ended up slightly against the dollar on Wednesday after the People's Bank of China set a new peak for the mid-point, for the fifth successive day, but dealers expect it to pull back soon. Spot yuan finished at 6.4780 versus the dollar after hitting an intraday peak of 6.4777 and firmer than Tuesday's close of 6.4791.
Before trade began, the PBOC set the yuan's daily mid-point at a peak of 6.4837 against the dollar, from Tuesday's 6.4845. The central bank uses the mid-point to guide the currency.
In nominal terms, the yuan has risen only 0.2 percent in May, less than gains of 0.9 percent in April and 0.4 rise in March, respectively.
Dealers said the yuan has risen about 0.5 percent every month on average, which indicates that the central bank could achieve the yearly goal of 5-6 percent.
Offshore, one-year non-deliverable forwards (NDFs) were bid at 6.3580, little changed from Tuesday's close of 6.3550. Their implied yuan appreciation in a year's time was 1.98 percent.