China's yuan firms despite worries over first Omicron cases in some cities

In the spot market, the onshore yuan opened at 6.3740 per dollar and was changing hands at 6.3737 at midday, 33 pips firmer than the previous late session close

China's yuan firmed against the dollar on Monday, as corporate demand ahead of the Lunar New Year offset expectations of an early US interest rate hike and worries over the first cases of the Omicron Covid-19 variant reported in the city of Tianjin.

Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at a near three-week high of 6.3653 per dollar, 89 pips firmer than the previous fix 6.3742.