China's yuan weakened against the dollar on Wednesday, reflecting dollar strength on the global markets, dealers said. The yuan, which was revalued by 2.1 percent on July 21 to 8.11, closed at 8.0939 per dollar, versus 8.0920 on Tuesday. It is now a further 0.2 percent stronger since the revaluation.
"While the dollar was strengthening on global markets, most banks chose not to push up the yuan despite strong dollar supply on the domestic market," said a dealer at a Chinese bank.
The dollar stayed near a two-month high against the euro on Wednesday as a swelling chorus of comments from Federal Reserve officials suggested the currency's interest rate advantage would keep strengthening.
The yuan weakened to close at 9.7285 against the euro on Wednesday versus Tuesday's 9.7234, but strengthened to end at 7.1662 against 100 Japanese yen from 7.1716, according to the central bank.
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