SHANGHAI, (Reuters) – China’s yuan firmed in early trade today after the central bank strengthened its official rate for the first time in nine trading days.
China allowed the biggest fall in the yuan in five months yesterday, pressuring regional currencies and sending global markets tumbling as investors feared it would trigger competitive devaluations.
The People’s Bank of China set the midpoint rate at 6.5636 per dollar prior to the market open, firmer than the previous fix of 6.5646 and the previous day’s closing quote 6.5929.
In spot trade, yuan opened at 6.5700 and was changing hands at 6.5759 in early trade, 170 pips away from the previous close and 0.19 percent away from the midpoint. The spot rate is allowed to trade with a range 2 percent above or below the official fixing on any given day.
The offshore yuan was trading 1.29 percent away from the onshore spot at 6.662 per dollar.
