Home Markets Yuan inches up, gains capped as state banks purchase dollars

Yuan inches up, gains capped as state banks purchase dollars

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    SHANGHAI, Sept 6 (Reuters) - China's yuan inched higher
against a weaker dollar on Monday, as investors pushed back
expectations for when the U.S. Federal Reserve will begin
tapering its massive stimulus.
    However, gains were capped as sources told Reuters that some
major Chinese state-owned banks were seen buying the greenbacks
in the onshore spot market late on Friday. That had pushed the
yuan sharply weaker, prompting some market participants to
become cautious and wonder about the policy stance.
    Prior to the market opening, the People's Bank of China
(PBOC) set the midpoint rate at a more than
2-1/2-month high of 6.4529 per dollar, 48 pips or 0.07%,
stronger than the previous fix of 6.4577.
    In the spot market, onshore yuan opened at 6.4550
per dollar and was changing hands at 6.4546 at midday, 39 pips
firmer than the previous late session close.
    Some currency traders said the state bank actions on Friday
could suggest authorities...

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