Yuan higher against dollar

HONG KONG: China’s yuan hovered near a 3-1/2-year high against the dollar on Friday as it headed for a seventh straight weekly gain, aided by a firmer midpoint fixing and fading expectations for a rate hike by the US Federal Reserve in September.

The spot yuan was 0.01 percent higher at 6.7443 to the dollar by 0258 GMT, after trading in a range of 6.7420 to 6.7483.

The currency hit 6.74 per dollar in the previous session, its strongest since February 2023.

Prior to the market opening, the People’s Bank of China set the midpoint rate at 6.7878 per dollar, its strongest since February 8, 2023 and 465 pips weaker than a Reuters’ estimate.