Chinese Yuan

Yuan opens weaker after PBoC fixes midpoint at 6.3969

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China's yuan opened weaker against the dollar on Monday but was stronger than the official midpoint fixed by the central bank.

The yuan opened at 6.3941 per dollar versus Friday's close of 6.3918. The People's Bank of China set the midpoint rate at 6.3969 per dollar prior to the market open, firmer than the previous session's fix of 6.3975.

The yuan posted its biggest weekly loss on record and touched four-year lows after the central bank's surprise devaluation of its currency by nearly 2 percent last Tuesday.

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While the central bank said late last week it sees no reason for the yuan to fall further, the currency is likely to remain under downward pressure as the economy struggles.

Traders say they do not rule out further but milder weakening in coming weeks, but do not believe Beijing will engineer a big devaluation or a series of devaluations to boost exports.