Yuan firm

Shanghai

China´s yuan edged up slightly against the U.S. dollar early on Wednesday on tight liquidity, with traders looking to a meeting of global central bankers in the United States for further cues.

Prior to market opening, the People´s Bank of China set the midpoint rate at 6.6633 per dollar, 36 pips or 0.05 percent weaker than the previous fix 6.6597. In the spot market, the yuan opened at 6.6620 per dollar and was changing hands at 6.6613 at midday, 7 pips firmer than the previous late session close and 0.03 percent stronger than the midpoint. Traders said the market was balanced in morning trade with prices traversing Tuesday´s late night close though there were signs that liquidity was tightening again.

Some traders said cash conditions have been tight for a week. Seasonal factors including corporate tax payments weighed on liquidity last week, and month-end cash demand started to emerge, adding to the pressure, they said.