No reason for further yuan devaluation, says China's central bank

China's yuan firmed at open on Friday, after the central bank said there was no reason for the yuan to fall further given the country's strong economic fundamentals.

The People's Bank of China set the midpoint rate CNY=SAEC at 6.3975 per dollar prior to market open, firmer than the previous day close 6.399.

The spot market CNY=CFXS opened at 6.3990 per dollar and was changing hands at 6.3980 in the morning, -10 pips away from the previous close and 0.01 per cent away from the midpoint. The spot rate is currently allowed to trade with a range 2 per cent above or below the official fixing on any given day.

The offshore yuan was trading -0.82 per cent away from the onshore spot at 6.451 per dollar.