SHANGHAI, Sept 5: China’s yuan edged up against the dollar on Thursday after the central bank set a slightly firmer midpoint to reflect an overnight fall in the dollar index.
Spot yuan changed hands at 6.1193 per dollar near midday, up 0.01 percent from the previous close, after the People’s Bank of China (PBOC) set its midpoint at 6.1696, or 0.05 percent stronger than Wednesday’s 6.1729.
Traders said the central bank appears to be guiding the yuan with greater reference to the dollar’s global movements recently. Support for the Chinese currency from improvement in the macroeconomy, however, has been offset by a recent depreciation in other Asian currencies.
‘It appears the PBOC has become more conservative recently, letting the yuan move in response to the dollar’s movements but confining its rises and falls within a tight range,’ said a dealer at a Chinese commercial bank in Shanghai.
‘If it sticks to this policy, the yuan’s appreciation for all 2013 may be more or less over.’
The yuan has gained 1.81 percent far this year, bucking the weakening trend of other emerging market currencies. However, the bulk of the yuan’s gains were in April and May.
(agencies)
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