Yuan erases gains as central bank adviser eyes rate of 6.6 against US dollar

Shanghai

CHINA'S yuan rose on Monday morning after the central bank set a stronger midpoint setting but the gains were erased in the afternoon as the market weighed comments by an adviser to the People's Bank of China on the currency's longer-term level.

Sheng Songcheng said over the weekend that the yuan had strengthened recently on the back of US dollar weakness and rising interest rates in China's financial markets, but these factors would recede, and the yuan will likely stabilise to around 6.6 against the greenback in the longer-term.