HONG KONG: China’s yuan traded in a narrow range against the US dollar on Friday as investors grappled with renewed concerns over hostilities in the Middle East and rising oil prices.
The dollar rode US Treasury yields higher on Friday after US President Donald Trump threatened “major military punishment” for Iran and its Houthi allies.
Brent crude climbed back above USD100 a barrel for the first time since May.
Analysts said a surge in oil prices has led markets to increasingly price in a US rate hike, lending support to the dollar and slowing the yuan’s appreciation.
The yuan was roughly flat at 6.7753 to the dollar as of 0241 GMT, after trading in a range of 6.7736 to 6.7767.
The currency was on track for a broadly unchanged week.
The offshore yuan fetched 6.7765 yuan per dollar, largely unchanged in Asian trade.
Prior to the market opening, the People’s Bank of China set the midpoint rate at 6.7939 per dollar, 144 pips weaker than a Reuters’ estimate.
The spot yuan is allowed to trade 2 percent either side of the fixed midpoint each day.
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