SHANGHAI: China’s yuan was flat against the dollar on Friday as a wave of dollar demand by big state-owned Chinese banks and oil companies helped to offset a three-month high midpoint, traders said.
The People’s Bank of China (PBOC) set the midpoint rate at 6.1241 per dollar prior to market open, the yuan’s strongest level since Jan. 20, or 0.07 percent firmer than the previous fix at 6.1281.
Following the strong fix, the spot market opened at 6.1935 per dollar, but surrendered some gains to change hands at 6.1979 at midday, no change from the previous close.
“Some state-owned banks and oil companies were seen buying dollars and that pushed down the yuan over the course of this morning,” said a trader at a Chinese city commercial bank in Shanghai.
