Yuan firm

China´s yuan firmed slightly against the dollar on Wednesday as domestic market participants trimmed greenback positions ahead of the U.S. Federal Reserve´s policy meeting at which it´s expected to raise interest rates.

While the greenback stood near a four-week high against a basket of currencies on Wednesday after strong U.S. wholesale inflation data, traders in China say they anticipate a fall in the dollar index after an expected Fed hike, which has been priced in by market participants.

Prior to market opening on Wednesday, the People´s Bank of China set the midpoint rate at 6.6251 per dollar, 89 pips or 0.13 percent weaker than the previous fix 6.6162.

Wednesday´s official midpoint was fixed at the weakest level in four weeks to reflect the strength in the dollar overnight, but traders said dollar´s broad impact has had little impact on the spot market.