Home Markets Yuan edges higher in thin trade, market awaits U.S. inflation data

Yuan edges higher in thin trade, market awaits U.S. inflation data

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    SHANGHAI, June 9 (Reuters) - China's yuan firmed against the
dollar in thin trade on Wednesday, with the market's focus
locked on upcoming U.S. inflation data for clues to when the
Federal Reserve might start tapering its monetary stimulus.

    Dealers said the spot yuan continued to swing around the 6.4
per dollar level, with many investors taking a "wait-and-see"
approach ahead of Thursday's U.S. inflation data and European
Central Bank (ECB) meeting.
    In the spot market, onshore yuan opened at 6.3975
per dollar and was changing hands at 6.3949 at midday, 61 pips
firmer than the previous late session close.
    The spot yuan kept to tight range of about 50 pips, while
trading volume shrank to $12.17 billion at
midday, down from a normal half-day volume of about $15 billion.
    Prior to market opening, the People's Bank of China (PBOC)
set the midpoint rate at 6.3956 per dollar, 47 pips
weaker than the previous fix of 6.3909.
    The market...

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