The yuan closed weaker against the dollar on Monday after the dollar index and the yen both rallied in global markets on risk-off sentiment. The central bank set a lower midpoint for the second straight trading session, down 0.4 percent to 6.2822, appearing to respond to a rally in the dollar index, which shrugged off the launch of wide-ranging spending cuts in the US that kicked in on Friday.
Volumes originally started low, booking slightly over $3 billion by midday, which traders said is typical of the market during the annual meetings of the Chinese People's Political Consultative Conference (CPPCC) and the National People's Congress (NPC). The CPPCC began on Sunday. However, the market revived somewhat in the afternoon to close slightly over $10 billion in transactions. The spot rate remained tightly range-bound all day, moving between 6.2298 and 6.2244.
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