China's yuan strengthened against the U.S. dollar on Friday following a Reuters news report that the People's Bank of China had reintroduced the so-called counter-cyclical factor in its currency fixing mechanism. Earlier this month, China had reiterated that it wouldn't use yuan devaluation as a tool in its trade war with the U.S., and named the counter-cyclical measure as one measure to support its currency. President Donald Trump last called China a currency manipulator earlier this month, though analysts believe the yuan's weakness against its U.S. rival can mostly be attributed to dollar strength and a selloff across emerging markets. One dollar last bought 6.8488 yuan in Beijing USDCNY, -1.0235% down 0.4% and 6.8289 yuan offshore USDCNH, -1.3055% down 1%. The offshore rate trades more freely.
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