SHANGHAI: China's yuan fell versus the dollar for the sixth straight day on Thursday, after the central bank fixed its official midpoint slightly weaker amid a broader decline in emerging Asian currencies in recent weeks.
The yuan has fallen steadily since early June but the extent of its depreciation has been limited. The key factor has been an apparent reversal in official support for appreciation that prevailed in April and May, traders said.
Spot yuan was trading at 6.1490 versus the dollar at midday, down 0.03 percent from Wednesday's close of 6.1470 after the People's Bank of China (PBOC) fixed its official midpoint at 6.1797, slightly weaker than Wednesday's 6.1779.
The PBOC guided the yuan stronger from early April to late May, ahead of a slew of major political events, including a G20 meeting and Chinese President Xi Jinping's visit to the United States, but has let it fall 0.46 percent since June 3 when it matched a record high of 6.1210, first hit on May 27.
The recent reversal may be an effort by the PBOC to hold the yuan at least somewhat steady against other Asian currencies.
The Korean won, Malaysian ringgit, Singapore dollar, and Philippine peso have all slipped against the dollar since mid-May. All have weakened more than the yuan's 0.46 percent drop since its record high on June 3. That means China's yuan has strengthened against the currencies of its neighbours.
Capital has exited from emerging markets in recent weeks amid concerns that the Federal Reserve may taper its bond buying.
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