SHANGHAI, May 10 (Reuters) - China's yuan jumped to a
3-1/2-month high against the dollar on Monday, underpinned by
broad dollar weakness, as investors continued to assess the
implications for monetary policy of a disappointing U.S.
The currency's strength is fuelling speculation the central
bank may step in via state banks to cool its rapid ascent,
Prior to market opening, the People's Bank of China (PBOC)
lifted the midpoint rate by the most since early
January to 6.4425 per dollar, 253 pips firmer than the previous
fix of 6.4678.
Monday's guidance, the strongest since Feb. 10, was largely
in line with their forecasts, according to analysts and traders.
In the spot market, the onshore yuan opened at
6.4320 per dollar and rose to a high of 6.4265, the firmest
since Jan. 29. By midday, it was changing hands at 6.4295, 13
pips firmer than the previous late session close.
The yuan swung around...