SHANGHAI: China’s yuan weakened to a near one-month-low on Friday, pressured by dollar strength following strong US economic indicators overnight and as geopolitical tensions in the Taiwan Strait kept investors cautious.
Prior to the market open, the People’s Bank of China set the midpoint rate, around which the yuan is allowed to trade in a 2% band, at 7.1102 per US dollar, weaker than the previous fix of 7.1098.
The spot yuan opened at 7.2420 per dollar and was changing hands at 7.2455 at midday, 33 pips weaker from the previous late session close. The dollar headed for its largest weekly rise in a month and a half on Friday, after May figures showed US business activity accelerated to the highest level in just over two years, damping most currencies including the yuan.
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