China’s yuan weakened on Tuesday as expectations of steep rate rises by the US Federal Reserve lifted the dollar, but moderating expectations for aggressive loosening by China’s central bank kept losses in check. “We’re still digesting expectations for further rate hikes by the Fed. The situation for the yuan will only improve when these expectations ease. The dollar still has room to strengthen,” said a trader at a foreign bank. The US dollar index, which measures the greenback against a basket of its peers, touched new two-year highs on Tuesday, and was last at 100.935, as benchmark US Treasury yields hovered near ... (full story)