China’s yuan slips

SHANGHAI: China’s yuan slipped against the dollar on Tuesday, as the central bank set a slightly weaker-than-expected midpoint fixing for the second day in a row, a signal that investors interpreted as an official intention to reinforce currency stability.

Most emerging market currencies strengthened to reflect the broad dollar weakness, as investors anxiously awaited fresh developments in US President Donald Trump’s trade policy and ongoing concerns over the US fiscal outlook.

However, the yuan underperformed its peers as the central bank pivoted from preventing excess losses in the Chinese currency over the past six months to slowing yuan rallies, currency traders and analysts said.

The yuan has strengthened about 1.1% to the dollar so far this month, below gains seen in other Asian currencies, such as the Korean won or Taiwan dollar.