China's yuan eased against the US dollar on Friday, after a weaker official midpoint fixing that reflected gains by the greenback, but the Chinese currency remained on course for a winning week. Overnight, the dollar climbed 0.5 percent against a basket of peers, and then held most of its advance, as recent concerns about trade tensions eased slightly and next week's Federal Reserve policy meeting came into focus.
Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.3340 per dollar, 199 pips or 0.3 percent weaker than the previous fix of 6.3141. The midpoint's move was its biggest one-day weakening, in percentage terms, in a week. Traders said the fixing largely matched market expectations.
The spot market opened at 6.3298 per dollar and fell to a low of 6.3345 at one point, the yuan's softest level in nearly a week. As of midday, the onshore spot yuan rate was changing hands at 6.3292, or 97 pips weaker than the previous late session close. The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, stood at 97.05, firmer than the previous day's 96.96.
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