1. China’s yuan flat on c.bank guidance, on track to slip for a 2nd month

China’s yuan flat on c.bank guidance, on track to slip for a 2nd month

China's yuan was flat on Friday after the central bank set an official guidance rate that barely changed from the previous session.

By: | Published: July 31, 2015 8:52 AM

China’s yuan was flat on Friday after the central bank set an  official guidance rate that barely changed from the previous session.

For July, the currency was on track to slip about 0.14 percent, which would mean a second straight month of slight weakening.

The People’s Bank of China (PBOC) set the midpoint rate  at 6.1172 per dollar prior to market open, down 0.01 percent from the previous fix at 6.1165.

The spot market opened at 6.2096 per dollar and was changing hands at 6.2096 in late morning, unchanged from the previous close.

The yuan has been narrowly traded between 6.209-6.210 per dollar since mid-July, unaffected by volatility in either global or domestic financial markets.

Beijing appears to want a stable currency to lift market confidence and increase the chances the International Monetary Fund will include it in organisation’s Special Drawing Right (SDR) basket and eventually make the yuan a global reserve currency.

China on Friday posted a $14.9 billion deficit on trade in services in June and a deficit of $91.6 billion in the first half of 2015.

The data had no immediate impact on the yuan’s trading Friday morning, traders said.     The offshore yuan at 6.2191 per dollar was trading 0.15 percent weaker than the onshore spot.

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