China's yuan weakened against the dollar on Friday as a softer midpoint and a broadly stronger greenback put the local currency on track for its worst monthly performance in 1-1/2 years. The dollar held near a 3-1/2-month high against a basket of currencies on Friday morning, supported largely by a sharp jump in US yields.
The global dollar index, a gauge that measures the unit's strength against six other currencies stood at 91.527 at midday after hitting a high of 91.637 overnight, its strongest level since mid-January. Prior to market opening, the People's Bank of China reduced the midpoint rate to 6.3393 per dollar, the lowest since March 21, and 110 pips or 0.17 percent weaker than the previous fix of 6.3283. In the spot market, the onshore yuan n opened at 6.3446 per dollar and was changing hands at 6.3354 at midday, 39 pips weaker than the previous late session close.
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