HONG KONG: China's yuan edged down against the dollar on Monday after the central bank set the weakest official midpoint in nearly a month to reflect strength in the global dollar index.
The People's Bank of China (PBOC) fixed the midpoint at 6.1248 per dollar, down 0.09 percent from the previous trading day on Dec. 31. It was the weakest level since Dec. 8.
Spot yuan changed hands at 6.2204 near midday, down 0.26 percent from last Wednesday's close at 6.2040. The Chinese currency lost 2.4 percent in 2014, its first significant annual loss since its landmark revaluation in 2005.
Further policy easing by the PBOC to help prop up slowing growth will likely keep downward pressure on the yuan this year, traders said. But a Reuters poll in December estimates that the yuan will rebound to 6.05 per dollar in a year's time despite policy easing.
China's foreign exchange market was closed Jan. 1-2 for the New Year holiday and resumed trading on Jan. 5.
The dollar index, which measures the greenback against a basket of six major currencies, hit a fresh nearly nine-year high of 91.131 on Friday and notched its third straight weekly gain.
The spot rate is currently allowed to trade 2 percent above or below the midpoint.
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