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China's yuan rebounds on PBOC guidance, but weakness seen lingering

Published on Apr 28, 2014 12:40 PM

SHANGHAI (Reuters) - China's yuan rebounded against the dollar on Monday after the central bank firmed its official midpoint for the fourth straight trading day, a signal that the monetary authorities may hope to keep the Chinese currency relatively stable for now.

But the rebound appeared weak given a subtle change in the state of dollar supply and demand in the domestic market after the yuan has weakened for more than three months in a row, traders said.

"Corporate sentiment towards the yuan has turned sour," said a trader at a Chinese commercial bank in Shanghai. "Besides, it appears that capital inflows into China are slowing as well after lingering weakness in the yuan."

Spot yuan stood at 6.2483 per dollar at midday, up 0.08 per cent from Friday's close after the People's Bank of China (PBOC) set its midpoint at 6.1565, up 0.02 per cent from Friday.

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