Update | China's central bank sets currency mid-price higher for second consecutive day

The People's Bank of China set the onshore yuan mid-price at 6.3969 to the dollar on Monday, rising for the second day in a row after the currency's shock devaluation last week roiled world financial markets.

The mid-price was set by the PBoC at 6.3975 last Friday. The onshore spot yuan closed at 6.3908 on Friday.

The onshore yuan traded by midday at 6.3944 to the dollar, weaker by 0.06 per cent from the 6.3908 close on Friday.

Offshore yuan traded at 6.4341 to the dollar, stronger by 0.28 per cent from the close at 6.4519 on Friday.

Societe Generale said in its morning call on Monday that "further depreciation is likely on the horizon but given the People’s Bank of China's actions late last week, we expect relative stability in the near term."

DBS said in its morning report that “the People’s Bank of China (PBoC) sought to play down the devaluation as the start of a unilateral depreciation trend for the onshore yuan (CNY) or a currency war."