The Chinese yuan strengthened against the U.S. dollar in the Asian session on Wednesday.
Meanwhile, data from the Conference Board showed that the leading index for the Chinese economy slowed dramatically in March, adding just 0.2 percent on month. That’s down from the 1.4 percent increase in February and the 0.6 percent gain in January.
The coincident index climbed 1.7 percent in March, the data showed – accelerating from the 0.6 percent increase in the previous month.
Against the greenback, the yuan rose to a 5-day high of 6.1968 from an early low of 6.2073. At yesterday’s close, the yuan was trading at 6.2005 against the greenback.
If the yuan extends its uptrend, it is likely to find resistance around the 6.10 area.
The People Bank of China set today’s central parity rate for yuan at 6.1290 per dollar, compared to Tuesday’s reference rate of 6.1280. The central bank sets the reference rate every morning and allows the currency to move upto 2 percent from that level.
The material has been provided by InstaForex Company – www.instaforex.com