SHANGHAI: China’s Yuan firmed against the dollar on Wednesday after the central bank fixed its daily guidance rate higher, helping offset any negative impact from data showing growth in the world’s second-largest economy slowed to a six-year low in the first quarter, traders said.
The People’s Bank of China (PBOC) set the midpoint rate (CNY=SAEC) at 6.134 per dollar prior to market open, 0.11 percent firmer than the previous fix at 6.1407.
The spot market (CNY=CFXS) opened at 6.2050 per dollar and was changing hands at 6.2085 at midday, 0.05 percent stronger than the previous close.
China’s annual economic growth slowed to a six-year low of 7.0 percent in the first quarter as demand stayed weak, meeting analyst forecasts but fanning expectations that authorities will roll out more policy stimulus to avert a sharper slowdown.
Traders said the market did not react to the GDP data too much, as the consensus now was that the monetary authorities intended to keep the currency relatively stable.
Besides, the data was in line with market expectations.
