Yuan weakens slightly, eyes on global dollar performance

SHANGHAI: The Chinese yuan edged lower on Monday morning after the central bank set the official midpoint slightly weaker to reflect the strength in the global dollar late last week, traders said.

Spot yuan was trading at 6.2187 at midday, weakening slightly from Friday's close of 6.2154, with traders saying banks and their clients were largely comfortable with the current level of the dollar/yuan rate.

Volumes were moderate, dropping to $5.6 billion by midday from slightly over $7 billion on Friday morning.

Traders have said that intra-day customers are focused on international developments impacting the dollar index in the absence of domestic market-moving factors.