China’s yuan firms on midpoint, set for weekly rebound

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Published: December 25, 2015 9:31:15 AM

The offshore yuan was trading 1.04 percent weaker than the onshore spot at 6.5395 per dollar. Onshore yuan was trading against the euro at 7.0925, almost unchanged from the previous close.

RenminbiThe spot market opened at 6.4745 per dollar and was changing hands at 6.4718 at midday, 0.08 percent firmer than the previous close. (Reuters photo)

China’s yuan firmed against the dollar on Friday in line with the central bank’s guidance rate, and is set for a slight weekly gain after a seven-week losing streak.

“Trading was tepid and I think the yuan will remain stable next week, partly due to the relatively tight money liquidity at year-end,” said a dealer at a Chinese commercial bank in Shanghai.

“Still, we will be cautious as dollar bids by corporates are relatively strong.” The People’s Bank of China set the midpoint rate at 6.4713 per dollar prior to market open, 0.06 percent firmer than the previous fix 6.4755.

The spot market opened at 6.4745 per dollar and was changing hands at 6.4718 at midday, 0.08 percent firmer than the previous close.

If it holds the gain, the yuan would mark the first weekly rise in eight weeks – of around 0.15 percent – after the longest weekly losing streak in 20 years.

Many global markets are shut on Friday for Christmas holiday, although Chinese markets remain open. Corporates typically need extra dollars for business settlement at the year-end.

The offshore yuan was trading 1.04 percent weaker than the onshore spot at 6.5395 per dollar. Onshore yuan was trading against the euro at 7.0925, almost unchanged from the previous close.

It weakened only 0.1 percent against the Japanese yen at 5.3853 to 100 yen by midday.

The yuan market at a glance: ONSHORE: Item Current Previous Change PBOC midpoint 6.4713 6.4755 0.06% Spot yuan 6.4718 6.4768 0.08% Divergence from 0.01% midpoint* Spot change ytd -4.14% Spot change since 2005 27.89% revaluation.

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