China's yuan slipped against the dollar on Wednesday after the central bank set a weaker midpoint to reflect an overnight rebound in the global dollar index. Traders expected the Chinese currency to remain range-bound until the world's second-largest economy sees a material recovery and seasonal demand for dollars gradually fades after June.
Spot yuan changed hands at 6.2340 per dollar near midday, down 0.04 percent from Tuesday's close at 6.2315. The People's Bank of China (PBOC) fixed the yuan midpoint at 6.1555, down 0.02 percent from the previous day's 6.1545.
"China is not out of the woods yet ... a continued downturn in the real estate sector remains a drag on the economy and a downside risk for achieving the government's development targets," said Dariusz Kowalczyk, a strategist at Credit Agricole.
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