BEIJING: China’s yuan was flat against the dollar on Tuesday, moving in a narrow range after the central bank set the daily guidance rate little changed. The People’s Bank of China (PBOC) set the midpoint rate at 6.1119 per dollar prior to market open, only 0.02 per cent weaker than the previous fix at 6.1104.
The spot market opened at 6.2075 per dollar and was changing hands at 6.2094 at midday, almost unchanged from the previous close.
Traders said they suspected some big state-owned Chinese banks selling dollars on behalf of the central bank when the yuan’s spot rate weakened beyond the 6.21 level last week.
“The authorities signalled again that they do not want the yuan to fall for the moment,” said a trader at a Chinese commercial bank in Shanghai.
He expected the yuan to continue trading in the narrow range of 6.18 to 6.22 per dollar in the near future. Many Chinese officials have pledged to maintain the stability of the yuan amid the current economic slowdown.
China’s factory activity showed some signs of stabilising in June but still contracted for the fourth straight month, according to a preliminary private survey. Traders said the data did not have immediate impact on the currency market today.
The offshore yuan was trading 0.06 per cent stronger than the onshore spot at 6.2055 per dollar.
