* Yuan ends at 6.2351/dollar, up 0.09 pct * Dollar index falls around 0.3 pct in Asian trade * PBOC sets midpoint 0.4 pct weaker on overnight dlr rise * Market sees c.bank keeping yuan stable for now By Lu Jianxin and Pete Sweeney SHANGHAI, Feb 22 (Reuters) - The yuan closed up slightly on Friday, with a correction of the dollar in global markets offsetting a weaker midpoint fixed by the People's Bank of China (PBOC), traders said. Spot yuan finished at 6.2351 per dollar, up 0.09 percent from Thursday's close, as the dollar index depreciated around 0.3 percent in Asian trade. Trading was sluggish, with volume down to $12.65 billion from Thursday's $13.5 billion. Traders said this was partly because recent global dollar volatility has made many companies take a wait-and-see attitude towards the yuan's long-term value. Before trading began, the PBOC set the yuan's midpoint at 6.2871, or 0.04 percent weaker than Thursday's midpoint of 6.2846, a move traders said reflected an overnight dollar rally. "Many players stayed on the sidelines today as global dollar uncertainties dampened interest in yuan/dollar trading," said a dealer at a U.S. bank in Shanghai. "The market sees the PBOC keeping the yuan relatively stable for now, but players have become increasingly dubious that the yuan will continue to appreciate in the longer term," he said. The onshore spot yuan market at a glance: Item Current Previous Change PBOC midpoint 6.2871 6.2846 -0.04 Spot yuan 6.2351 6.2405 +0.09 Divergence from -0.83 midpoint* Spot change YTD -0.08 Spot change since 2005 revaluation +32.74 *Divergence of the dollar/yuan exchange rate. Negative number indicates that spot yuan is trading stronger than the midpoint. The 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 traded in Hong Kong (CNH) remains at a premium to the onshore version but the premium has recently narrowly sharply due to the global dollar's strength. One-year non-deliverable forwards, considered an imperfect indicator of future expectations for yuan appreciation or depreciation, were quoted at rates implying depreciation over the next 12 months. The offshore yuan market at a glance: Instrument Current Difference from onshore (pct) Offshore spot yuan 6.2340 +0.02* Offshore non-deliverable 6.3221 -0.56** forwards *Premium for offshore spot over onshore **Figure reflects difference from PBOC's official midpoint, since non-deliverable forwards are settled against the midpoint. .

Source