Chinese yuan weakens versus dollar

01 Sep, 2005

China's yuan eased against the dollar on Wednesday, giving up more of the gains it had racked up over in the previous week as the central bank stayed out of the market. The yuan finished at 8.0998 to the dollar on Wednesday versus Tuesday's close of 8.0973.
The currency, which was revalued by 2.1 percent on July 21 to 8.11, is now 0.13 percent stronger than that level.
The yen hit a two-week low against the euro and fell versus the dollar, pressured by record oil prices as well as disappointing Japanese data.
Chinese dealers now expect the yuan to firm against the dollar in coming weeks, especially during Chinese President Hu Jintao's visit to the United States from September 5 to 8, possibly easing pressure for the further revaluation US law-makers have called for.
The yuan closed firmer against 100 yen at 7.2654 on Wednesday from 7.2970 on Tuesday, and strengthened versus the euro to 9.8674 from 9.8870, according to the central bank website.

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