China lowers yuan mid-point to weakest level in 3-1/2 months

SHANGHAI: China's central bank lowered its official yuan midpoint to the weakest level in 3-1/2 months, dragged by sharp losses in the spot yuan in the previous session as concerns grew that Sino-US trade could deepen if talks between the two fail.

Friday's midpoint was at 6.7912 per dollar, 247 pips, or 0.36 percent, weaker than the previous fix of 6.7665 and was the softest since Jan. 25.

However, traders said Friday's official fixing came in much higher than market expectations.

The midpoint was 154 pips firmer than Reuters' estimate of 6.8066.