The yuan edged up against the dollar on Friday on yuan demand from banks and their corporate clients, shrugging off the softest midpoint set by the central bank in a month, traders said. If the yuan closes around the midday level, it would have weakened 0.4 percent from the week before. The People's Bank of China weakened the midpoint rate for a third straight day to 6.5202 per dollar prior to market open, 0.11 percent softer than the previous fix 6.5128, as the dollar index gained 0.6 percent against a basket of major currencies overnight.
The spot yuan opened at 6.5030 per dollar. The opening rate was relatively strong as one Chinese policy bank was selling dollars, and did not reflect market demand, traders said. The spot rate then fluctuated and was changing hands at 6.5059 by midday, 0.03 percent firmer than the previous close and 143 pips stronger than the midpoint. The offshore yuan was trading 0.19 percent softer than the onshore spot at 6.5183 per dollar.