The People's Bank of China (PBOC) allows the exchange rate to rise or fall 1 percent from the midpoint it sets each morning. Trading volume stood at $12.7 billion at market close, up from Monday's 9.7 billion. The dollar index, which the yuan usually tracks inversely while moving in sympathy with the euro, declined slightly in overnight trade.
Offshore yuan one-year non-deliverable forward contracts (NDFs) have flattened out in December but continue to imply depreciation in the next 12 months, quoted at 6.3114 at the close. Offshore spot yuan continued to trade at a wide premium to onshore yuan, at 6.2105 to the dollar.