Yuan hovers near 4-year high as US midterms, Chinese regulator meeting in focus

Business Recorder reported that the yuan remained close to its strongest level against the US dollar in over four years on Monday. The onshore currency was 0.01% higher at 6.6551 per dollar by 0249 GMT, after reaching 6.6523 on Friday; offshore trading put it at 6.6529, also up about 0.01%. Investors were watching this week’s US midterm vote for possible effects on international markets.

Before trading began, the People’s Bank of China fixed its daily reference at 6.7146 per dollar, 521 pips below a Reuters estimate of 6.6625. The currency can move 2% either way from that level each day, while analysts said the bank’s guidance points to a managed pace of appreciation. Separately, the central bank added cash to the banking system as it made an overnight lending rate its main policy benchmark, a change analysts said could improve funding conditions and aid the economy. Market participants were also looking for support measures after Chinese blue-chip shares recorded their steepest monthly decline in more than a decade.