China's yuan is set to record its biggest weekly loss in more than 10 months against the dollar, after the central bank set a weaker midpoint for the fifth consecutive day to reflect a rebound in the global dollar index. The People's Bank of China (PBOC) has guided the yuan to a series of record highs since October 11, which saw the Chinese currency gaining 0.6 percent within two weeks. But the uptrend paused this week.
Traders expect the yuan to consolidate until the Communist Party's third plenum meeting to be held from next Saturday, as Beijing tries to dampen expectations that its currency is a one-way play again. Spot yuan traded at 6.0944 near midday, little changed from Thursday's close of 6.0945. The PBOC fixed its official midpoint at 6.1452, 0.04 percent lower than the previous day's 6.1425.