Yuan sinks

SHANGHAI: The yuan weakened to a 14-month low against the dollar on Friday as fears over rising Sino-U.S. trade tensions left the Chinese currency on course for an eighth straight weekly loss, the longest streak since the market exchange rate was unified in 1994. Prior to market opening, the People´s Bank of China lowered its midpoint rate to 6.8322 per dollar, 380 pips or 0.56 percent weaker than the previous fix of 6.7942. Friday´s official guidance rate, largely matched market forecasts, was the weakest since May 31, 2017. The softer yuan midpoint dragged the spot yuan lower.

The onshore yuan opened at 6.8571 per dollar and fell to a low of 6.8767 at one point in morning trade, the weakest since May 25, 2017. As of midday, the onshore spot yuan was changing hands at 6.8680, 299 pips weaker than the previous late session close and 0.52 percent softer than the midpoint.

If the yuan finishes the late night session at the midday leavel, it would have weakened 0.8 percent to the dollar for the week, after falling 0.4 percent a week earlier.