The yuan edged up against the dollar on Wednesday on position adjustments ahead of the holiday weekend and due to a weakening dollar, with traders playing down soft export data. The People's Bank of China set the midpoint rate at 6.5593 per dollar prior to market open, 0.04 percent firmer than the previous fix 6.5618. Spot yuan opened at 6.5717 per dollar and was changing hands at 6.5682 at midday, firming 0.04 percent from the previous close.
If the yuan closes around the midday level, it will weaken 0.3 percent for the week. China's markets will be closed on Thursday and Friday for the Dragon Boat festival holiday. The offshore yuan was trading 0.06 percent softer than the onshore spot at 6.5721 per dollar. China's exports fell more than expected in May as global demand remained stubbornly weak, but imports beat forecasts, adding to hopes that the economy may be stabilising.