* Yuan gains 0.2 pct to 6.2462/dlr near midday * Traders see revived corporate demand for yuan * Yuan may hover around 6.20-6.27/dollar in May - analyst * Yuan will resume appreciation in H2 - analyst By Gabriel Wildau SHANGHAI, May 5 (Reuters) - China's yuan headed towards its biggest one-day gain in four weeks on Monday, as corporates bet that a recent run of weakness in the currency would leave little room for further decline. Spot yuanCNY=CFXS changed hands at 6.2462 per dollar near midday, 0.21 percent stronger than Wednesday's close, the last trading day before markets shut for the Labour Day holiday. If the currency ends at that level, it would be the biggest one-day gain since April 8. The yuan in April posted its fourth straight month of losses, finishing down 0.7 percent for the month and 3.3 percent for the year. But market participants now suspect the yuan may have limited room to fall further. "We believe the fundamental flow of net exporter (dollar) selling will reassert CNY appreciation in H2," Claudio Piron, Asia emerging market forex strategist at Bank of America-Merill Lynch in Hong Kong, wrote in a note on Monday. Indeed, traders said that corporate yuan demand was strong on Monday. Corporate yuan selling has been the main source of depreciation pressure on the currency since February, as firms sought to unwind long yuan positions accumulated earlier. Traders widely believe that market intervention by the People's Bank of China (PBOC) was responsible for the yuan's fall, at least in its initial stage, as authorities sought to punish speculators who regarded the yuan as a one-way bet. Now, however, many traders believe the PBOC has largely achieved this objective and is unlikely to guide the yuan substantially weaker. The spot rate is likely to move between 6.20 and 6.27 per dollar in May, Guangdong Development Bank said in a research note published on Sunday. The onshore spot yuan market at a glance: Item Current Previous Change (pct) PBOC midpointCNY=SAEC 6.1560 6.1580 +0.03 Spot yuanCNY=CFXS 6.2462 6.2593 +0.21 Divergence from midpoint* 1.46 (pct) Spot change ytd -3.08 Spot change since 2005 revaluation 32.50 *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 1 percent from official midpoint rate it sets each morning. OFFSHORE CNH MARKET The offshore yuan market at a glance: Instrument Current Difference from onshore (pct) Offshore spot yuanCNH=D3 6.2455 +0.01 Offshore non-deliverable 6.2370 -1.30 forwardsCNY1YNDFOR= *Premium for offshore spot over onshoreCNY=CFXS **Figure reflects difference from PBOC's official midpoint, since non-deliverable forwards are settled against the midpoint.CNY=SAEC . >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> RECENT DEVELOPMENTS - US warns China over currency depreciationID:nL2N0MZ1L1 - Capital flows, improving trade to prop up yuan in H2ID:LnL4N0MM0K9 - Dim sum bonds mark record quarter in Hong KongID:nL4N0MT1ZH - New quotas rekindle debate over dim sum market's futureID:nL3N0KQ1GB - Flood of offshore yuan bonds may spark higher yieldsID:nL3N0KX1IA KEY GRAPHICS - The yuan tests its wider trading bandhttp://link.reuters.com/vyc88v - China's yuan, other emerging mkt currencies vs dollarhttp://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 - Despite relatively stable dollar/yuan exchange rate, the yuan is appreciating on a trade-weighted basis. GRAPHIC:http://link.reuters.com/sed74t >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> (Additional reporting by Li Ran in BEIJING; Editing by Jacqueline Wong) ((gabriel.wildau@thomsonreuters.com)(+86 21 6104-1783)(Reuters Messaging: gabriel.wildau.thomsonreuters.com@reuters.net)) Keywords: MARKETS CHINA YUAN MIDDAY/
Yuan set for best day in 4 weeks on corporate demand
* Yuan gains 0.2 pct to 6.2462/dlr near midday * Traders see revived corporate demand for yuan * Yuan may hover around 6.20-6.27/dollar in May - analyst * Yuan will resume appreciation in H2 - analyst By Gabriel Wildau SHANGHAI, May 5 (Reuters) - China&aposs yuan headed towards its biggest one-day gain in four weeks on Monday, as corporates bet that a recent run of
May 5, 2014