The yuan moved in a tight box of 8.2769 to 8.2773, near the top end of a wafer-thin trading range of 8.2760 to 8.2800 the central bank enforces for reasons of economic stability. Turnover edged up to US$450 million from US$440 million on Tuesday.

"The market has an abundance of hard currency accumulated after China recorded strong foreign trade surpluses over the past few years," said a domestic bank dealer.

The oversupply of dollars helped offset China's small deficit of US$1.03 billion in the first three months of this year, although dealers said the yuan could come under pressure if it were repeated.

The yuan is not freely convertible on the capital account and its movements within the government-set range are decided basically by the trade performance.

The yuan weakened slightly yesterday against the Japanese currency to 6.8802 per 100 yen from 6.8764 on Tuesday and eased to 8.9373 to the euro from 8.9076. It ended unchanged at 1.0609 against the Hong Kong dollar.

On the futures market, Shanghai copper futures ended mixed in moderate volume yesterday as investors awaited a clearer trend on the London Metal Exchange, which traded little-changed in inter-office hours, traders said.

The most active September 2003 contract closed up 20 yuan (US$2.4) at 16,800 yuan (US$2,030) a ton, while most other contracts ended 90 yuan (US$10.8) lower to 60 yuan (US$7.22) higher. Combined market volume fell to 63,746 lots from Tuesday's 66,280 lots.

"Chinese investors were careful not to build heavy positions as they were waiting for clearer direction on the LME," said a Chinese trader based in Shanghai.

LME three-month copper was quoted at US$1,624/US$1,627 a ton at 0400 GMT in Asian trade from US$1,627 at Tuesday's kerb close.

(China Daily April 17, 2003)