By Reuters Staff
(Correcgts year to 2020 in healdine and lead)
SHANGHAI/BEIJING, Dec 31 (Reuters) - The yuan was set to post a gain of 6.5% against the dollar for 2020, firming again on the last day of the year despite traders reporting that some state banks bought dollars earlier trade to prevent the Chinese currency from rising too fast.
The onshore spot yuan finished its domestic trading session at 6.5398 per dollar, and barring a calamitous fall in the late night trading the yuan was set to show its first annual gain after two years of falls.
The yuan owes its strength this year to the broadly weaker dollar, the widening yield gap between China and the United States and China’s effective coronavirus containment.