China's yuan eased against the US dollar on Friday, on track to post its worst week in three months after the central bank set its yuan midpoint at a one-week low to reflect the greenback's extended gains. The dollar firmed against its major trading partners on Friday morning, buoyed by a rise in US Treasury yields and a more upbeat outlook for economy in the United States.
Markets are closely watching for the outcome of trade talks between top officials from the world's two largest economies this week. China is offering US President Donald Trump a package of trade concessions and increased purchases of American goods aimed at cutting the US trade deficit with China by up to $200 billion a year, US officials familiar with the proposal said.
Prior to market opening, the People's Bank of China set the midpoint rate at 6.3763 per dollar, the lowest since May 10, 84 pips or 0.13 percent weaker than the previous fix of 6.3679. In the spot market, the onshore yuan opened at 6.3715 per dollar and was changing hands at 6.3703 at midday, 58 pips weaker than the previous late session close.