The yuan closed down against the dollar on Friday after a weaker mid-point fixing, with the Chinese currency posting its biggest weekly decline since mid-March as the dollar hit a two-month high due to uncertainties in global markets. Spot yuan closed at 6.3882 versus the dollar, weaker than the previous day's close of 6.3840. It has now risen 3.15 percent so far this year and 6.86 percent since its depegging in June 2010.
The yuan fell 0.09 percent this week, its biggest weekly decline in half a year. Despite the dollar's about 2 percent rise this week, the yuan's slight decline suggests the central bank wants it to appreciate versus a basket of currencies of China's trading partners, dealers said. Before trading began, the PBOC fixed the day's mid-point at 6.3922, weaker than Thursday's 6.3889 after the US dollar index jumped 1.0 percent overnight. Offshore, one-year dollar/yuan non-deliverable forwards (NDFs) were bid at 6.2890 late on Friday.
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