China's yuan weakened on Friday with bullish market sentiment curbed by what traders suspected was central bank intervention containing the currency's rise. The yuan closed at 6.2415 per dollar, down 0.1 percent from Thursday's close. The central bank set its midpoint at 6.2923 per dollar, a mild softening after the dollar index strengthened in overnight trade.
Traders believe there is now a co-ordinated effort between China's big four banks and the central bank to keep the rate from banging into the top end of the trading limit - as it did on most days in November and early December - by stepping in to buy dollars to keep the market liquid.
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