Yuan halts recent slide after PBOC guides currency higher

Onshore yuan rises 0.1pc to 6.6472 per US dollar, and offshore rate firms 0.1 per cent to 6.6535

PUBLISHED : Wednesday, 10 August, 2016, 12:21pm
UPDATED : Wednesday, 10 August, 2016, 12:21pm

The yuan rebounded on Wednesday morning after recent losses, after the People’s Bank of China raised the currency’s daily reference rate against the US dollar.

The onshore yuan rose 0.1 per cent to 6.6472 per US dollar on Wednesday morning, and the offshore rate firmed 0.1 per cent to 6.6535.

The PBOC set the yuan’s mid-point rate versus the US dollar at 6.653, up 0.1 per cent from the previous fix.

On Tuesday, the yuan weakened slightly against the greenback, with the onshore yuan down 0.02 per cent to 6.662 per dollar in late trading. Trading volumes remained relatively low, with the daily volume of onshore markets down 8 per cent from the previous session.

“The markets are running quietly, with volumes primarily driven by real money and speculation position squaring, ahead of the summer holiday season,” said Stephen Innes, a senior trader at Oanda Asia Pacific.

“I anticipate range trade to dominate,” he added.