China's yuan closed weaker against the dollar on Monday and posted its second-biggest monthly loss on record as the central bank kept up strong pressure on speculators and sought to curb hot money inflows. The People's Bank of China (PBOC) fixed the official mid-point at a six-month low for the second straight trading session, setting a weaker tone for the day, and traders expect the currency to slide further in coming weeks.
There were signs that major state-owned banks continued to buy dollars, a move traders say reflects the central intention to guide the yuan towards further depreciation. The yuan fell some 2.7 percent against the dollar in the first quarter, nearly erasing all of the gains it made last year. Spot yuan closed at 6.2180 per dollar on Monday, 0.09 percent weaker than Friday's close, after the PBOC fixed its mid-point at 6.1521, down 0.05 percent from the previous trading day.
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