Also aiding yuan sentiment, China's central bank governor Yi Gang said in remarks published on Friday that China's economy is stabilising and likely to grow around 5% this year.
The yuan's strength comes at a time when the dollar is weakening, as signs of softening inflation has strengthened expectations that the U.S. Federal Reserve may be close to ending its aggressive tightening cycle. The greenback took another leg down on Friday and the U.S dollar index , which measures the currency against six major peers, slid to a roughly one-year low of 100.78.
U.S. Labor Department data released on Thursday showed the producer price index (PPI) fell by the most in nearly three years last month. Data released a day earlier had showed consumer price inflation moderating. The yuan market at 0322 GMT:
ONSHORE SPOT:
Item Current Previous Change
PBOC midpoint 6.8606 6.8658 0.08% Spot yuan 6.8465 6.868 0.31% Divergence from -0.21%
midpoint*
Spot change YTD 0.78%
Spot change since 2005 20.89%
revaluation
Key indexes:
Item Current Previous Change
Dollar index 100.851 101.011 -0.2
*Divergence of the dollar/yuan exchange rate. Negative number
indicates that spot yuan is trading stronger than the midpoint.
The People's Bank of China (PBOC) allows the exchange rate to
rise or fall 2% from official midpoint rate it sets each
morning.
OFFSHORE CNH MARKET
Instrument Current Difference
from onshore
Offshore spot yuan 6.847 -0.01%
*
Offshore 6.6903 2.55%
non-deliverable
forwards
**
*Premium for offshore spot over onshore
**Figure reflects difference from PBOC's official midpoint,
since non-deliverable forwards are settled against the midpoint. .
(Reporting by Li Gu and Tom Westbrook)
