China's yuan on Friday extended a blistering rally that has let it gain 7.5 percent against the dollar this year, more than erasing the 6.5 percent loss it suffered in 2016. The Chinese currency, coming back into the global spotlight, on Thursday blew past the key 6.5 per dollar level for the first time since May 2016, and on Friday it again had a hefty gain.
Spot yuan surged to 6.435 before weakening. At the 4:30 pm (0830 GMT) official local close, the yuan was at 6.4617, the highest such close since April 2016. The market also has a night session, lasting until 11.30 pm Shanghai time (1530 GMT). Prior to Friday's market opening, the People's Bank of China raised its official yuan midpoint for the 10th straight session, to 6.5032 per dollar, the strongest since May 12, 2016.
The last time the midpoint had a stronger fixing for 10 consecutive days was in December 2010. But Friday's midpoint - 237 pips or 0.36 percent firmer than the previous one of 6.5269 per dollar - was weaker than market expectations, traders said. Their forecasts had suggested the guidance might be firmer than 6.5 per dollar.
The onshore spot yuan opened at 6.4800 per dollar and was at 6.4617 by the domestic close, 233 pips stronger than the previous late session close and 0.64 percent firmer than the midpoint. As of 0830 GMT, the offshore yuan was trading 0.18 percent weaker than its onshore counterpart at 6.4731 per dollar.