The yuan was little changed before the release of China’s trade data for March.
Overseas sales gained 7 percent from a year earlier, according to the median estimate of 29 economists surveyed by Bloomberg. China may also report a trade deficit of $3.15 billion and import growth of 9 percent, surveys showed. Inflation (CNCPIYOY) accelerated to 3.6 percent from 3.2 percent in February, according to official data yesterday.
“Investors are looking for clearer indications of where China’s economy is headed,” said Daniel Chan, chief economist at BWC Capital Markets in Hong Kong. “However, yuan gains are likely to be slower this year as Europe’s debt crisis continues to drag on China’s export growth.”
The yuan traded at 6.3072 per dollar as of 10:43 a.m. in Shanghai, from 6.3085 yesterday, according to the China Foreign Exchange Trade System. The People’s Bank of China weakened the yuan’s daily reference rate by 0.04 percent to 6.3048 today. The currency is allowed to move as much as 0.5 percent on either side of the fixing.
In Hong Kong’s offshore market, the yuan was unchanged at 6.3105 per dollar. Twelve-month non-deliverable forwards gained 0.01 percent to 6.3345, a 0.4 percent discount to the onshore spot rate, according to data compiled by Bloomberg.
The yuan’s one-month implied volatility, a measure of exchange-rate swings used to price options, was unchanged at 2.15 percent.
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