STOCKS | Yuan Weakens To One-Week Low Against Dollar

The onshore yuan closed at 6.7219 per dollar, down 1 pip and marking a second straight decline, according to ETNet. It traded between 6.7212 and 6.7250 during the session, the weakest level since August 25. The offshore yuan was down 10 pips at 6.7237. The daily midpoint was set at 6.7829, down 20 pips and the weakest since August 27, about 590 pips softer than market expectations. Market participants said higher oil prices have intensified inflation concerns, while a firmer dollar and U.S. Treasury yields have continued to weigh on the yuan. Maybank said the People's Bank of China is likely to keep limiting the pace of yuan appreciation, while the market remains focused on whether the Federal Reserve will raise rates.