HONG KONG: China’s yuan edged lower against the US dollar on Friday as traders looked ahead to next week’s Federal Reserve meeting, which is expected to usher in an interest rate cut and possibly provide some clues on the outlook for further policy easing.
By 0421 GMT, the yuan was 0.05 percent lower at 7.1219 to the dollar after trading in a range of 7.1179 to 7.1225.
The modest decline comes after the onshore yuan rose to its strongest level since November 5, 2024 in the previous session, underpinned by Fed rate-cut expectations.
The dollar weakened against major currencies in Asian trade on Friday after a two-day winning streak, but most of the moves in the currency market have been relatively small as traders were reluctant to make big bets ahead of next week’s Fed meeting.