With the dollar’s rally easing up, China’s central bank has set the trading band for its currency stronger for a second straight day.
The People’s Bank of China set the midpoint of the renminbi’s 4 per cent trading band against the dollar at Rmb6.88890 on Tuesday, stronger by 0.22 per cent from Monday.
That brings the fix 0.4 per cent firmer from the last time it weakened on Friday, and tracks with a softening of the dollar index, which measures the greenback’s strength against a basket of peers. That gauge has closed the last two days down and is off 0.1 per cent in Asian morning trade.
The offshore renminbi rate (CNH) was stronger following the fix at Rmb6.921, 0.07 per cent firmer. The onshore rate (CNY) which applies for the lion’s share of the currency and which is bound by the daily midpoint starts trade shortly.
