Yuan hovers around 1-week low

SHANGHAI: China’s yuan hovered close to a one-week low against the dollar on Wednesday, pressured by signs of loosening yuan liquidity conditions in the onshore market.

Cash conditions eased towards the year-end after the central bank injected fresh funds into the banking system for six straight trading days to smoothen rising seasonal demand, traders said, adding that the loosening conditions weighed somewhat on the currency.

The volume-weighted average rate of the benchmark overnight repo traded in the interbank market, a gauge that measures the onshore yuan liquidity, fell to 1.4388% on Wednesday, the lowest since September.