SHANGHAI: China’s yuan weakened slightly against the dollar on Friday as traders keep their eyes on US-Iran talks and war-triggered inflation worries that pushed up US yields.
In the near term, analysts expect the yuan to fluctuate against the greenback, whose appeal is being dimmed by easing Middle East tensions, but is drawing support from an increasingly hawkish Fed.
“Dollar bulls and bears are locking their horns,” Nanhua Futures said in a note, expecting the yuan to oscillate around 6.8 per dollar as a result.
On Friday, the onshore yuan changed hands at 6.7998 at 0335 GMT, softening slightly from Thursday’s close.
Prior to the market open, China’s central bank set the guidance rate at 6.8373 per dollar, a tad weaker than the previous session’s level.
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