September 25, 2017 / 8:58 AM / a year ago

Yuan extends losses to nearly 0.5 pct after breaching key level

SHANGHAI, Sept 25 (Reuters) - China’s yuan extended losses against the U.S. dollar on Monday afternoon, falling to its lowest in nearly four weeks, after breaching the psychologically important 6.6 level.

Spot yuan opened at 6.5974 per dollar and slid throughout the day to settle at 6.6205 by the 4:30 p.m (0830 GMT) domestic close, the weakest local close since Aug. 28.

If the yuan closes at that level in the night trading session, it would have lost almost 0.5 percent of its value from Friday’s late night close of 6.5890.

Traders attributed accelerated yuan selling in the afternoon to strength in the greenback overseas after the euro fell following Germany’s election results.

But many analysts and traders believe Chinese authorities have also grown uncomfortable in recent weeks with the yuan’s rapid gains, which have spurred complaints from some exporters. It had surged to a 21-month high in early August.

China takes the official market closing price at 4:30 p.m Shanghai time (0830 GMT) into consideration when it fixes the official guidance rate, in an effort to let market forces play a bigger role in determining the yuan’s value.

The market also has an evening session lasting until 11:30 p.m. (Reporting by Winni Zhou and Andrew Galbraith; Editing by Kim Coghill)

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