(Yicai Global) Dec. 25 -- The People's Bank of China has set the starting point for forex trade on a firmer footing for the Chinese yuan this morning.
The China Foreign Exchange Trade System, which is an interbank trading and forex division under the central bank, fixed the redback to buy USD6.8919. This is 46 basis points stronger than the closing price of 6.8965 yesterday.
The CFETS sets the benchmark on the morning of each business day. Spot rates may deviate 2 percent above or below the figure.
The US dollar is expected to react to the US tax cuts that took effect at the beginning of this year and a slowing economic growth, which will make it fall back from its heights, thus strengthening the Chinese yuan, Chinese investment firm Northeast Securities said in a report. The yuan's exchange rate has a stable basis in comparison to the depreciation pressures of 2016, it added.
Editor: Emmi Laine