Yuan slips on signs of China slowdown

SHANGHAI: China's yuan slipped against the dollar on Tuesday and looked set for a third straight month of decline, on fresh signs of economic slowdown in the world's second-largest economy.

China's factory activity expanded at a slower pace in August while the services sector contracted, according to official purchasing manager surveys, raising the likelihood of more near-term policy support to boost growth.

Cheung pointed to largely steady official guidance from the central bank prior to market opening. On Tuesday, the PBOC set the midpoint rate at 6.4679 per dollar, 2 pips weaker than the previous fix of 6.4677.