China's yuan closed lower to the dollar on Thursday for the third straight day as the US currency traded stronger, with some dealers suspecting that the central bank had given the market a shove.
A senior Chinese financial official defended the recent softness in the yuan, saying volatility was quite normal in the floating currency regime.
The yuan closed at 8.0490 to the dollar, having lost 0.16 percent in the past three sessions. It had previously touched 8.0365, the highest since its revaluation in July.
The yuan, which closed at 8.0481 on Wednesday, has gained only a further 0.76 percent against the dollar in the seven-and-a-half months since the 2.1 percent revaluation.
The dollar was trading at 118.15 yen, up 0.3 percent from late Wednesday trade in New York.
Despite the yuan's weakening, dealers agreed it would trend higher.
"That's no doubt about that, because of the strong dollar supply on the (Chinese) foreign exchange market," said a Shanghai-based dealer at a European bank.
The yuan rose to 6.8270 versus 100 Japanese yen from 6.8430 on Wednesday, but it softened to 9.6050 to the euro from 9.5800.
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