China’s yuan weakened slightly against the dollar on Wednesday as the country continued to face deflationary pressure, while traders awaited upcoming US inflation data to gauge the timing of Federal Reserve rate cuts. Prior to market opening, the People’s Bank of China set the midpoint rate, around which the yuan is allowed to trade in a 2% band, at 7.1075 per US dollar, weaker than the previous fix 7.1057. The spot yuan opened at 7.1957 per dollar and was changing hands at 7.1990 at midday, 9 pips weaker than the previous late session close. The central bank maintained its months-long practice of setting the rate at ... (full story)