China's yuan extended its losses against the dollar on Thursday, and is set for the fifth straight day in the red, after the central bank lowered its official guidance to its weakest level in nearly two weeks. The direction of the Chinese currency, down about 0.9 percent this week, has become hard to predict recently, traders said. At one point last week, the yuan was up more than 7.5 percent against the dollar this year and more than made up the losses notched in 2016.
Prior to market opening on Thursday, the People's Bank of China (PBOC) lowered its official yuan midpoint for the third session in a row to 6.5465 per dollar, the weakest level since September 4. The midpoint was 83 pips or 0.13 percent weaker than Wednesday's fix of 6.5382, reflecting a softer spot yuan a day earlier and broad dollar moves overnight, traders said.
In the domestic spot market, the yuan opened at 6.5472 per dollar and was changing hands at 6.5450 at midday, only 3 pips weaker than the previous late session close and 0.02 percent softer than the midpoint.
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