Yuan firms after China reaffirms economic goals

China's yuan firmed on Friday after the ruling Communist Party reaffirmed plans for "medium to high" economic growth in its next five-year plan.

PHOTO: EPA

OCT 30, 201510:05 AM

[SHANGHAI] China's yuan firmed on Friday after the ruling Communist Party reaffirmed plans for "medium to high" economic growth in its next five-year plan.

THe currency was also supported by China's decision to ease family planning restrictions to allow all couples to have two children after decades of a strict one-child policy, a move aimed at alleviating demographic strains on the economy.

The offshore yuan was trading 0.01 per cent away from the onshore spot at 6.3464 per dollar after traders said state-owned banks intervened in offshore markets on Thursday to eliminate the spread between onshore and offshore markets. (nL3N12T3MA) The People's Bank of China set the midpoint rate at 6.3495 per dollar prior to the market open, firmer than the previous fix of 6.3596, and firmer than the previous day's closing quote of 6.3567.

In the spot market, the yuan opened at 6.3460 per dollar and was changing hands at 6.3456 in early trade, 111 pips away from the previous close and 0.06 percent away from the midpoint.

The spot rate is allowed to trade with a range 2 per cent above or below the official fixing on any given day.

REUTERS