China's yuan eased versus the dollar on Friday as the US currency took a breather after a week-long rally on global markets, but the yuan closed stronger than 8.0900 per dollar amid good dollar supply domestically.
The yuan closed at 8.0896 per dollar, compared with Thursday's 8.0885. It was revalued by 2.1 percent to 8.11 on July 21 and is now a further 0.25 percent stronger.
The yuan has tended to weaken this week, as G20 finance ministers and central bank chiefs, including US Treasury Secretary John Snow, prepared to meet in China over the weekend.
Snow has pressured Beijing to allow the yuan to rise more quickly to help reduce the United States' big trade deficit with China.
Dealers said the dollar's strength on global markets was helping China's central bank curb the yuan's gains, though it is expected to appreciate in the long run.
"The dollar's strength allowed the central bank to show its will to resist US pressure for a stronger yuan in the short term," said a Shanghai-based dealer with a foreign bank.
Indeed, Finance Minister Jin Renqing snubbed US demands for faster currency reform, saying the country would liberalise the exchange rate in its own time.
Dealers expected the yuan to gain 40 to 50 points over the next six weeks.
The yuan weakened to end at 9.7205 to the euro, compared with Thursday's 9.7020, and softened to 7.0559 per 100 yen, from 7.0437, the central bank said on its.
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