China's yuan slips from 14-month peak as PBOC signals caution over currency rally


— Reuters

SHANGHAI: China's yuan slipped on Tuesday, retreating from a 14-month peak against the dollar hit in the previous session, as the central bank again used its official guidance rate to signal caution over a recent spike in the Chinese currency.

Market participants closely watch the People's Bank of China's (PBOC) daily midpoint fixing for any subtle signals about the official stance on the foreign exchange market. The central bank has been generally setting the midpoint firmer than market expectations since last November.

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