BEIJING: The Chinese yuan was trading relatively stable on Monday morning in the onshore spot market, mainly on speculation the central bank would not resort to a weaker currency to shore up the economy after its third interest rate cut in six months on Sunday.
Traders reacted positively after the People’s Bank of China (PBOC) set its benchmark midpoint rate at a stronger level at 9:15am, raising it by 15 basis points, or 0.02 per cent to 6.1132. Traders are allowed to trade the spot yuan at 2 per cent above or below the midpoint rate.
The onshore yuan weakened 0.01 per cent, or 8 pips, to 6.2091 as of noon on Monday, while the offshore yuan weakened 0.09 per cent, or 57 pips, to stand at 6.3666. The onshore yuan is at its weakest level in two weeks.
