Yuan steady near 3-1/2-year high as markets watch for US inflation data

Business Recorder reported that China's yuan was little changed at 6.7465 to the US dollar on Wednesday, holding close to its strongest level since February 2023 reached on Monday. Offshore yuan was quoted at 6.7479 per dollar, about 0.02 per cent weaker in Asian trade, with official guidance keeping the currency steady.

Currency traders are watching US inflation figures due later in the day, which could guide expectations for Federal Reserve policy after weak jobs data last week reduced bets on further tightening. A six-currency gauge for the dollar stayed almost unchanged at 99.86.

Analysts at China Construction Bank said the yuan was likely to move in both directions with the greenback this month, while still expecting steady appreciation over the year with limited upside. Separately, the People's Bank of China set its midpoint at 6.7882 per dollar, a level 452 pips below the Reuters estimate, and traders said this gap signals it is managing the pace of gains.