China's yuan was little changed on Monday morning after the central bank strengthened its guidance slightly, stuck in a tight range as traders said big banks are keeping the market on lockdown. The stronger midpoint setting followed a slide in the dollar index overnight, but the spot market hardly twitched.
The yuan has nearly flatlined in minimal volatility in recent weeks as traders say major state-owned banks continue to buy up dollars, capping upward pressure on the traded exchange rate.
The central bank set the midpoint at 6.1342 per dollar in the morning, up 0.06 percent from Friday's close. The spot yuan opened at 6.0924 per dollar, marginally firmer than Friday's 6.0936 close, and stayed within a close range of less than 10 points in the morning session.