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SHANGHAI: China’s yuan firmed against the dollar on Friday, after overnight data showed the US economy contracted for a second straight quarter, hosing down more aggressive expectations for Federal Reserve interest rate hikes.

A top meeting of the ruling Communist Party on Thursday didn’t offer many new clues about China’s next economic stimulus moves, and traders expect the yuan to remain mostly rangebound until new catalyst emerges.

The People’s Bank of China set the midpoint rate at 6.7437 per dollar prior to market open, weaker than the previous fix 6.7411.

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