The Chinese yuan ended marginally weaker against the dollar on Thursday, taking a break after two days of strong gains, as dealers said they expected the currency to continue a trend of gradual and steady gains.
The yuan closed at 8.0780 to the dollar. Signs of continued strength in the US currency encouraged the yuan's slight retracement from Wednesday's close of 8.0771, a post-revaluation high, dealers said.
The yuan, which was revalued by 2.1 percent in July to 8.11 per dollar, is now a further 0.40 percent stronger.
"The yuan's mild correction backed by the dollar's outlook doesn't mean the yuan will stop its gradual appreciation," said a dealer at a major Chinese state-owned bank. "It's also important the central bank tolerated the yuan's gradual gains without clear intervention in past days."
On the global markets, the dollar has been strengthening due mainly to the prospect of more interest rate rises by the Federal Reserve. On Thursday, it was in sight of the 32-month high of 121.40 yen hit on Monday despite a small correction.
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