China's yuan weakened on Tuesday after closing at a post-revaluation high of 8.0971 in the previous session, after the central bank stepped in to prevent the currency from strengthening too sharply.
The yuan closed at 8.1002 to the dollar. It was revalued by 2.1 percent on July 21 to 8.11, and is now 0.12 percent firmer - not much by the standards of other currencies but much more than the infinitesimal moves allowed before the policy change.
Still, dealers expected the yuan to firm slowly but steadily over the rest of this week, but see resistance at 8.0900.
The currency is allowed to strengthen or weaken by 0.3 percent daily, though it has yet to come even close to using up that leeway.
China kicked off trade in onshore forex forwards this week, which signal domestic expectations for how much the yuan might appreciate in up to a year's time.
Prior to the move, the government allowed only a small number of players, including state-owned Bank of China and the Industrial and Commercial Bank of China to settle forex forwards for local corporate clients.
The yuan ended softer against the yen at 7.4297 on Tuesday but firmed against the euro to 10.0035 from 10.0535.
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