China's yuan weakened against the dollar on Thursday morning, weighed down by companies' demand for the US currency, traders said. The People's Bank of China set the midpoint rate at 6.8731 per dollar prior to market open, firmer than the previous fix of 6.8808.
The spot market opened at 6.8796 per dollar and was changing hands at 6.8790 at midday, 70 pips weaker than the previous late session close and 0.09 percent softer than the midpoint. The offshore yuan was trading 0.16 percent weaker than the onshore spot at 6.89 per dollar. One-year NDFs are settled against the midpoint, not the spot rate.