Yuan firms slightly on dollar slide, no reaction to Q4 GDP data

SHANGHAI, Jan 18: The Chinese yuan edged up on Friday after the central bank set the official midpoint higher for the first time in three days, reflecting overnight weakness in the dollar.
Spot yuan opened a few points firmer than Thursday’s close and remained within an extraordinarily tight 13-pip range throughout the morning.
Volumes were moderate, clocking over $7 billion by midday. Transaction volumes frequently pick up dramatically in the afternoon session prior to a weekend.
The spot market appeared to have already priced in positive economic data released on Friday morning that showed annual GDP growth in the fourth quarter picked up to 7.9 percent, slightly better than expectations.
Traders have said that intra-day customers are more focused on international developments impacting the dollar index, and economists are concerned about other signs that housing inflation might be returning, which could prompt Beijing to tighten monetary policy.


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