Yuan inches up in nervous trade ahead of Fed decision

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SHANGHAI, Nov 3 (Reuters) – China’s yuan edged up on Wednesday but moves were cautious ahead of a Federal Reserve decision later in the day which is expected to see the U.S. central bank start to roll back massive pandemic stimulus, putting pressure on emerging market currencies.

Analysts said the yuan was hovering around 6.40 per dollar as financial markets awaited the Fed decision and any clues on its outlook for inflation and interest rate hikes.

The People’s Bank of China set the midpoint rate at 6.4079 per dollar prior to the market open, weaker than the previous fix of 6.4009 and Reuters estimate of 6.4041.

The broad dollar index fell to 94.061 from the previous close of 94.11.

“While the magnitude of the spread between the actual and estimated USDCNY fix has been narrow, the persistently higher USDCNY fix above estimate is a mild form of signalling to dampen (its) appreciation pace,” Maybank said in a note.

The spot market opened at 6.4015 per…

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