China's yuan fell 0.3 percent against the US dollar on Friday and looked set to post its first monthly loss since April, weighed down by a series of weaker central bank fixings and strong dollar demand heading into a week-long holiday. A sharp reversal in the yuan in recent weeks has shaved its year-to-date gains against the greenback to around 4 percent, from 7.5 percent earlier this month.
Prior to market opening on Friday, the People's Bank of China lowered its official yuan midpoint for the fifth straight day to 6.6369 per dollar, the weakest level since August 25, reflecting weakness in the spot yuan a day earlier. The official guidance was 84 pips or 0.13 percent weaker than the previous fix of 6.6285 on Thursday.
The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, stood at 95.06, weaker than the previous day's 95.17. The global dollar index rose to 93.189 from the previous close of 93.085. The offshore yuan was trading 0.13 percent firmer than the onshore spot at 6.6692 per dollar.
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