China's yuan rose to a more than one-week high against the US dollar on Wednesday helped by firmer central bank guidance, but gains were capped by rising corporate demand for the greenback. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.4040 per dollar, 117 pips firmer than the previous fix and in line with a softer dollar.
The spot market opened at 6.4036 per dollar and climbed to 6.3910 at one point, the strongest since May 28. As of midday, the spot yuan was changing hands at 6.3951, 57 pips firmer than the previous late session close and 0.14 percent stronger than the midpoint.
The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, stood at 98.2, firmer than the previous day's 98.13.