SHANGHAI: The yuan weakened against the dollar on Friday and is poised to snap a three-week rising streak, as Moody’s negative outlook on China’s credit rating, and the country’s mixed trade data dented fragile confidence.
But analysts expect Beijing to use various tools to prevent a rapid decline in the yuan toward year-end, amid signs the currency’s sharp rebound since mid-November is fading.
Onshore spot yuan was changing hands around 7.15 per dollar at midday, slightly softer than the previous session’s close.
If the yuan closes at the current level, it would post a roughly 0.36% weekly decline against the dollar, the biggest such drop in three months.
Data on Thursday showed that China’s exports grew 0.5% from a year earlier in November, increasing for the first time in six months. But imports fell 0.6%, dashing forecasts for a 3.3% increase.
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