China's yuan weakened against the dollar in early trade on Wednesday after the central bank set a lower guidance rate.
China’s yuan weakened against the dollar in early trade on Wednesday after the central bank set a lower guidance rate.
The People’s Bank of China set the midpoint rate at 6.3773 per dollar prior to the market open, weaker than the previous fix of 6.3721, and also from the previous day’s closing quote at 6.376.
The spot market opened at 6.3799 per dollar and was changing hands at 6.3799 in early trade, 39 pips weaker from the previous close and 0.04 percent lower from the midpoint. The spot rate is currently allowed to trade with a range 2 percent above or below the official fixing on any given day.
President Xi Jinping said that China would push forward market-based reform of its currency regime and make the yuan convertible on the capital account over time, according to an interview by the Wall Street Journal published on Tuesday.
Later that day, banking industry sources told Reuters that China’s central bank has completed drafting regulations for an international payment system that would facilitate greater usage of the yuan globally.
The offshore yuan was trading 0.57 percent weaker than the onshore spot at 6.4165 per dollar.