China's yuan falls to 3-week low on central bank guidance

SHANGHAI: China's yuan fell to a three-week low against the dollar on Wednesday after the central bank set another weaker midpoint.

Spot yuan traded at 6.1272 per dollar by midday, 0.03 percent weaker than the previous close.

The People's Bank of China (PBOC) set the midpoint at 6.1428, down 0.02 percent from Tuesday's fix.

Traders said the central bank is likely to guide the Chinese currency to depreciate in the near term amid the slowing economy. A weaker yuan will also help deter inflows of speculative hot money, which have seen a revival of late.