In the spot market, the yuan opened at 6.9253 per dollar and was changing hands at 6.9258 at midday, 13 pips weaker than the previous late session close and 0.03 percent weaker than the midpoint. “There is no clear direction where the yuan will move,” said a trader at a Chinese bank in Beijing. The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, stood at 96.14, weaker than the previous day’s 96.16. The dollar trod water early on Wednesday, showing little inclination to move against major peers such as the euro and yen before Trump’s news conference. Despite recent yuan strength in both onshore and offshore markets amid surging offshore yuan borrowing rates, market players remain bearish on the yuan’s outlook. “I see a sooner-rather-than-later test of the 7 level, which could occur after the Lunar New Year break, when interbank dealers will likely stoke their depreciation engines,” said Stephen Innes, a senior trader at OANDA. The week-long Lunar New Year holiday will start at the end of this month
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