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China central bank sets yuan midpoint at 3-1/2 month low after bullish Fed minutes

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China's central bank on Thursday set its yuan/dollar midpoint rate at 6.5531 prior to the market opening, the fix's weakest level since early February, after the US Federal Reserve issued bullish minutes on the rate hike prospect.

[SHANGHAI] China's central bank on Thursday set its yuan/dollar midpoint rate at 6.5531 prior to the market opening, the fix's weakest level since early February, after the US Federal Reserve issued bullish minutes on the rate hike prospect.

Thursday's midpoint weakened 0.5 per cent from the previous day's fix of 6.5216 per dollar, but was relatively near the overnight spot yuan close at 6.5398, which had partially factored in the greenback's global strength, traders said.

The dollar stood tall in Asian morning trading on Thursday, after racing to multi-week highs when the Fed's minutes on the latest policy meeting rekindled expectations for a June interest rate hike.

REUTERS