Yuan weakens, bucking strength in central bank mid-point on poor sentiment
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[SHANGHAI] China's yuan weakened against the dollar on Wednesday, bucking a strengthening in the central bank's official midpoint as the sentiment on the currency's outlook is poor, traders said.
The People's Bank of China set the midpoint rate at 6.1282 per dollar prior to the market open, firmer than the previous fix of 6.1364.
Spot trading opened at 6.2380 per dollar and the yuan was changing hands at 6.2461 at midday, 26 pips weaker than the previous close and 1.92 per cent away from the midpoint.
The spot rate is allowed to trade with a range 2 per cent above or below the official fixing on any given day.
The offshore yuan was trading 0.07 weaker than the onshore spot at 6.2505 per dollar.
The Chinese currency has generally been weakening since December and sometimes neared its daily limit, under pressure from easing steps by global central banks that have pushed up the dollar and depressed currencies in emerging markets.
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REUTERS
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