HONG KONG: China's yuan snapped a six-day gaining streak on Thursday after the central bank set a weaker midpoint and on further signs that recovery of the world's second-largest economy remains patchy.
The spot yuan dropped to the lowest level in a week near midday and is heading toward the biggest daily loss since June 16 when the Chinese currency fell 0.23 percent against the dollar.
Growth in China's vast factory sector slowed to a three-month low in August as output and new orders moderated, a preliminary private survey showed on Thursday.
After a hopeful bounce in June, spurred in large part by government stimulus, China's economic growth appears to be softening again, with indicators ranging from lending to output and investment all pointing to weakness.
The People's Bank of China set the yuan midpoint at 6.1632 per dollar prior to the market open, down 0.08 percent from the previous fix, marking the weakest level in two weeks.
The yuan opened at 6.1450 per dollar, and was changing hands at 6.1516 near midday, down 0.17 percent from the previous close.
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