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China's yuan closed flat against the dollar on Monday after a historic weekly loss last week, with the market looking for direction on where the currency will move.
The People's Bank of China set the midpoint rate at 6.3969 per dollar prior to market open, weaker than Friday's closing quote of 6.3918.
The spot market closed at 6.3947, 29 pips away from the previous close and 0.03 percent away from the midpoint.
The spot rate is currently allowed to trade with a range 2 percent above or below the official fixing on any given day.
The offshore yuan was trading 0.75 per cent away from the onshore spot at 6.4431 per dollar.
The yuan posted its biggest weekly loss on record and touched four-year lows after the central bank's surprise devaluation of its currency by nearly 2 percent last Tuesday.
Traders say the currency is likely to remain under downward pressure as the economy struggles, but do not believe Beijing will engineer a big devaluation or a series of devaluations to boost exports.
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