Yuan edges up vs dollar, stability seen persisting for weeks

SHANGHAI, July 29:  The Chinese yuan edged higher against the dollar on Monday after the central bank set a slightly stronger midpoint, as traders say Beijing is moving to keep the exchange rage stable.
Spot yuan changed hands at 6.1309 per dollar at midday, 0.01 percent firmer than Friday’s close of 6.1316, after the People’s Bank of China set its official midpoint at 6.1705, or 0.02 percent stronger than Friday’s 6.1720.
‘The government is increasingly interested in keeping the exchange rate relatively stable given economic and market uncertainties,’  a dealer at a European bank in Shanghai said.
He and other traders expect that in the absence of signs  of substantial economic turnaround, in the near term the yuan will remain in a tight range between 6.13 and 6.14 per dollar.
In the latest sign of a slowing economy, activity in  China’s vast manufacturing sector slipped to an 11-month low in July.
The flash HSBC/Markit Purchasing Managers’ Index fell to 47.7 from June’s final reading of 48.2, a third straight month below the watershed 50 line which divides expansion from contraction and the weakest since August 2012.
(AGENCIES)

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