SHANGHAI: China’s yuan edged lower against the dollar on Friday as investors awaited US non-farm payrolls data due later in the day while monitoring developments in the Middle East conflict.
The Iran-backed Hezbollah militia rejected a new ceasefire in Lebanon on Thursday and Israel said it would not withdraw troops from the country, undermining US President Donald Trump’s efforts to halt fighting there and reach a peace deal with Tehran.
The spot yuan opened at 6.7879 per dollar and was last trading at 6.7756 as of 0238 GMT, 14 pips lower than the previous late session close.
While the dollar remains elevated, persistent corporate settlement flows into yuan onshore have kept the Chinese currency on a steady-to-firm trajectory.
The yuan is down 0.1 percent against the dollar this month, and 3.2 percent firmer this year, making it one of the best-performing emerging market currencies since the outbreak of the Iran war.
Prior to the market opening, the People’s Bank of China set the midpoint rate at 6.8157 per dollar, its strongest since February 14, 2023, and 422 pips weaker than a Reuters’ estimate. The spot yuan is allowed to trade 2 percent either side of the fixed midpoint each day.
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