China's yuan weakened against the dollar on Thursday as corporate investors brushed off reports about the central bank winding down its US Treasuries holdings and bought the greenback, taking advantage of its recent selloff. The yuan has come under pressure this week after the central bank took steps to loosen control over its midpoint mechanism.

Prior to market opening on Thursday, the People's Bank of China set the midpoint rate at 6.5147 per dollar, 60 pips or 0.09 percent firmer than the previous fix of 6.5207. The strength in the yuan midpoint failed to lift the spot yuan higher with onshore yuan opening at 6.5130 per dollar. At midday, it was changing hands at 6.5153, 82 pips weaker than the previous late session close and 0.01 percent softer than the midpoint.

The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, stood at 95.53, weaker than the previous day's 95.55. The global dollar index rose to 92.389 from the previous close of 92.332. The offshore yuan was trading 0.11 percent weaker than the onshore spot at 6.5223 per dollar.

Copyright Reuters, 2018