SHANGHAI: China’s yuan inched up against the dollar on Tuesday, after the central bank set the official guidance rate higher.
The People’s Bank of China (PBoC) set midpoint rate at 6.1179 per dollar prior to market open, 0.04 per cent firmer than the previous fix at 6.1205.
The spot market opened at 6.1980 per dollar, but quickly surrendered gains to trade in a narrow range during the morning trading session. By midday, the spot rate was changing hands at 6.2050, firming 0.01 per cent from the previous close.
“The trading volume is light today,” said a trader at an Asian bank in Shanghai, “The market still lacks clear direction to trade on either side.” China’s consumer inflation eased in May, while producer prices fell for the 38th straight month, raising concerns about growing deflationary pressures as the economy cools.
