SHANGHAI Oct 10 China's central bank on Monday
set the midpoint for the yuan currency weaker than the
psychological 6.7 yuan per dollar level after a week-long
national holiday during which offshore yuan touched
nine-month lows against the dollar.
The People's Bank of China put the midpoint at
6.7008 yuan per dollar. It was the weakest midpoint since
September 2010. The currency is allowed to trade in a band of 2
percent on either side of the midpoint, which is set each day.
The spot rate quickly followed suit, dipping
below 6.7 for the first time since July.
On Friday the offshore yuan slumped to its lowest rate
against the dollar since Jan. 7.
In the weeks before onshore markets closed for the National
Day holiday from Oct. 1-9 the spot rate flirted with 6.7. The
last close was at 6.6745.
On Oct. 1 the yuan was officially added to the basket of
currencies that determines the exchange rate of the
International Monetary Fund's synthetic reserve currency, the
Special Drawing Right, or SDR.
(Reporting by John Ruwitch and Winni Zhou; Editing by Eric