China’s yuan fell against the dollar on Thursday as investors betting on yuan appreciation moved to take profits toward year-end, while “hot money” inflows appeared to be dampened by Chinese regulators.
Traders say the upward trend of the Chinese currency remains intact, however, given China’s good economic fundamentals and trade surplus. They expect the yuan to rise 2-3 per cent next year.
Spot yuan traded at 6.0748 per dollar near midday, down 0.05 per cent from Wednesday’s close of 6.0717. The People’s Bank of China (PBOC) fixed the official midpoint at 6.1115, down 0.02 per cent from the previous day’s 6.1100.
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