China's yuan rises on corporate dollar sales, set to rise 0.5 pct in Oct

SHANGHAI, Oct 31 (Reuters) - China's yuan edged higher against the dollar on Friday, buoyed by strong corporate dollar sales, traders said, and it is set to show a gain of 0.5 percent in October, the fifth straight month of mild appreciation. "Many companies are selling dollars this morning, continuing a recent trend," said a trader at an Asian bank in Shanghai, adding that the corporate dollar sales might indicate the market is betting on strong exports again in October. Spot yuan stood at 6.1103 per dollar by midday, 0.09 percent firmer than Thursday's close. The People's Bank of China (PBOC) fixed its midpoint at 6.1461, practically unchanged from Thursday's fix. October trade data is due on Nov. 8. A run of higher export figures has helped the Chinese currency rise more than 2 percent since May. The onshore spot yuan market at a glance: Item Current Previous Change PBOC midpoint 6.1461 6.1457 -0.01% Spot yuan 6.1103 6.1159 0.09% Divergence from -0.58% midpoint* Spot change ytd -0.92% Spot change since 2005 revaluation 35.45% *Divergence of the dollar/yuan exchange rate. Negative number indicates that spot yuan is trading stronger than the midpoint. The People's Bank of China (PBOC) allows the exchange rate to rise or fall 2 percent from official midpoint rate it sets each morning. OFFSHORE CNH MARKET The offshore yuan market at a glance: Instrument Current Difference from onshore Offshore spot yuan * 6.1154 -0.09% Offshore non-deliverable forwards 6.235 -1.43% ** *Premium for offshore spot over onshore **Figure reflects difference from PBOC's official midpoint, since non-deliverable forwards are settled against the midpoint. . >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> FACTBOX - Yuan and capital account reforms and pilot programmes RECENT DEVELOPMENTS - PBOC cuts back on intervention, but not totally hands off - China's weak currency disappoints carry traders - Hong Kong should cherish its standing as offshore yuan hub - China c.banker - US warns China over currency depreciation - Capital flows, improving trade to prop up yuan in H2 KEY DATA POINTS - Yuan spot performance versus midpoint after trading band widened http://link.reuters.com/req62w - China's yuan, other emerging mkt currencies vs dollar http://link.reuters.com/xyd46v - Global currency performance INTERACTIVE GRAPHIC: http://link.reuters.com/cyx46v - China's trade surpluses mainly driven by weak imports rather than strong exports. GRAPHIC: http://link.reuters.com/qav68s - The yuan resumes appreciating on a trade-weighted basis GRAPHIC: http://link.reuters.com/sed74t >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> (Reporting by the Shanghai Newsroom; Editing by Alan Raybould)

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