The Chinese yuan slightly climbed on Tuesday against the world's reserve currency after the central bank of the Asian nation set a stronger fixing rate, The Economic Times reports.
The yuan is likely to reverse week-long losses due to the reference rate set by the People's Bank of China. Before the Tuesday trade session, the PBOC established an official base rate that was a lot lower for six consecutive days. The central bank allows the dollar/yuan exchange rate to climb or fall no more than 1 percent per day from its midpoint.
Though the Asian nation's currency slipped last week, "traders continue to bet on a stronger yuan while corporates still want to hold yuan positions," a trader with a local bank in Beijing told The Wall Street Journal on Tuesday. "Typically, the yuan will rise at a slower pace against the dollar toward the year-end."
The yuan edged up roughly 0.05 percent from its close on Monday.
The renminbi last week fell 0.25 percent against the greenback after having repeatedly set record highs last month against its rival, according to The Wall Street Journal.
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