SHANGHAI, Nov 13 (Reuters) – China’s yuan eased against the dollar on Monday, thanks to continuing corporate demand for the greenback and a weaker official fixing. The dollar got a lift against major peers as U.S. yields spiked and the pound stumbled. Prior to Monday’s market opening, the People’s Bank of China lowered its midpoint rate at 6.6347 per dollar, the weakest level in nearly two weeks, 65 pips or 0.1 percent weaker than the previous fix of 6.6282 on Friday. In the spot market, the onshore yuan opened at 6.6510 per dollar and was changing hands at 6.6473 at midday, 62 pips weaker than the late session close on Friday and 0.19 percent softer than the midpoint. Its offshore counterpart was trading 0.14 percent weaker than the onshore spot, at 6.6565 per dollar as of midday. Traders said seasonal demand for the dollar from some oil firms and others impacted the spot yuan rate. Market participants said Beijing’s Friday announcement on raising foreign ownership limits in financial firms did not have a direct impact on spot yuan, but it should boost the Chinese currency and capital inflows in long run. While markets “will tread carefully knowing it will take time for something actionable to occur”, the opening up is “a clear signal that China is looking to increase foreign direct investment (FDI)”, Stephen Innes, OANDA’S head of Asia-Pacific trading, said in a note in Monday.
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