China's yuan off near 1-month high on worries over elevated basket index - NewsBreak

SHANGHAI, Oct 12 (Reuters) - China's yuan on Tuesday eased from a near one-month high against the dollar hit a day earlier, as the currency's strength against those of its major trading partners raised investor concern of a dampening effect on exports. Still, the yuan slipped relatively less than its peers against a rising dollar, which currency traders said reflected recent positive developments in Sino-U.S. relations. Persistent strength in the yuan against a basket of currencies has unsettled some market participants who have held back from testing new highs, traders said. The market will pay close attention to trade data due on Wednesday for any signs a stronger yuan has had an impact on China's exports. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.4447 per dollar, 32 pips or 0.05% firmer than the previous fix of 6.4479, the strongest since Sept. 16. The firmer official guidance pushed China's trade-weighted yuan basket index to a fresh