China’s yuan touched a near one-week low against a firmer dollar on Thursday, dampened by investor expectations of larger liquidity injections by the central bank in June as local governments step up bond issuance to support the economy. Prior to market opening, the People’s Bank of China (PBOC) set the midpoint rate at 6.7095 per dollar, 444 pips or 0.7% weaker than the previous fix at 6.6651. In the spot market, onshore yuan opened at 6.6900 per dollar and eased to 6.7070, the weakest level since May 27. By midday, it was changing hands at 6.6984, 126 pips softer than the previous late session close. Analysts ... (full story)