SHANGHAI: China’s yuan weakened to five-month lows on Monday against the dollar, which was propped up by safe-haven flows and growing views the US Federal Reserve may not in any hurry to cut interest rates.

The yuan was trading at 7.2432 per dollar at 0357 GMT, the lowest level since mid-November 2023 and slightly weaker than the previous close, despite the central bank’s daily benchmark fixings and support from state-owned banks.

The currency is down 2% this year, pressured by its relatively low yields versus other currencies and outflows of foreign investment from an anemic stock market.

Prior to the market open, the People’s Bank of China (PBOC) set the midpoint rate, around which the yuan is allowed to trade in a 2% band, at 7.1043 per US dollar, firmer than the previous fix 7.1046.

In the spot market, the onshore yuan opened at 7.2394 per dollar and was changing hands at 7.2432 at midday, 42 pips weaker than the previous late session close.