Yuan eases

Shanghai: China´s yuan eased slightly against the U.S. dollar on Monday after the greenback consolidated from losses sustained on the news of a U.S. government shutdown.

The dollar regained some footing on Monday, supported by higher Treasury yields, while investors took a relatively calm view of the Washington wrangling.

The stabilised U.S. unit paused the rally in the Chinese yuan, which registered six straight weeks of gains, the longest winning streak since January 2017. The People´s Bank of China (PBOC) recalibrated the template for daily yuan fixings recently to nullify a discretionary counter-cyclical factor it introduced into the formula last year to contain the currency´s decline.

That, analysts said, meant the yuan would move in line with the currencies of its trading partners and was seen as an attempt by authorities to put a floor under the currency.