|Published : 17 Mar 2017, 20:52:23|
Chinese yuan weakens to 6.8873 against USD
China's yuan weakened against the dollar on Friday, due to corporate demand for the greenback, but the Chinese currency was on track for its best week in more than two months.
The People's Bank of China set the midpoint rate at 6.8873 per dollar prior to market open, weaker than the previous fix of 6.8862.
In the spot market, the yuan opened at 6.8980 per dollar and was changing hands at 6.9019 at midday, 16 pips weaker than the previous late session close and 0.21 per cent softer than the midpoint.
For the week, the onshore yuan is set for a nearly 0.2 per cent gain against the US unit, the biggest weekly percentage rise since mid-January.
Traders said the domestic forex market shrugged off increases in short-term interest rates that China's central bank made on Thursday.
Economists said the move was a bid to stave off capital outflows and keep the yuan currency stable after the Federal Reserve raised US rates overnight.
On Friday, a state-owned Chinese newspaper said the United States has historically followed a "selfish" interest rate policy, warning of negative spillover effects from the Fed's rate-hiking cycle.
US Secretary of State Rex Tillerson will be in Beijing on Saturday and Sunday to meet Chinese President Xi Jinping.
The global dollar index fell to 100.25 from the previous close of 100.36.
The offshore yuan was trading 0.36 per cent firmer than the onshore spot at 6.877 per dollar, according to Reuters.