China yuan eases as soft economic data, weaker fixing weigh

Business Recorder reported that the Chinese yuan lost ground to the dollar on Tuesday, as July economic figures disappointed and the central bank set its midpoint below expectations. The spot rate was last at 6.7439 per dollar as of 0213 GMT, 22 pips under the prior late session close. The midpoint of 6.7905 sat 453 pips softer than a Reuters estimate, hinting that officials want to temper the yuan's rally.

Momentum in the Chinese economy faded early in the second half, as factory output and retail sales decelerated amid extreme weather and subdued domestic demand, adding pressure on officials to boost stimulus. Huatai Futures analysts described the yuan's gains as mostly passive, a result of the greenback's softness, and warned that net long dollar positions near $50 billion could magnify a dollar rebound. The currency has appreciated 0.6% versus the greenback this month and 3.7% year to date.

MUFG analysts projected the yuan could reach 6.65 per dollar by year-end, citing steady exports and tech-led asset revaluation, though they expect gains to stay gradual given domestic headwinds. The dollar index, a gauge of the greenback against six currencies, rose 0.059% to 99.6. Market participants will watch the Federal Reserve's Jackson Hole symposium next week for insight into the latest data.