China’s yuan rose slightly against the dollar on Thursday, underpinned by robust northbound inflows into Chinese stocks, while investors awaited the annual meeting of the country’s parliament and key U.S. data for more clues on the economic agenda for this year.
A-share performance has affected broader financial market sentiment over the past few months, traders said, and inflows of about 13 billion yuan ($1.81 billion) through the northbound stock trading link in morning trades supported the currency.
Prior to market opening, the People’s Bank of China (PBOC) set the midpoint rate CNY=PBOC, around which the yuan is allowed to trade in a 2% band, at 7.1036 per dollar, 39 pips firmer than the previous fix of 7.1075.
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