Yuan weakens against dollar, but key basket hits multi-year high - NewsBreak

SHANGHAI, Nov 5 (Reuters) - China's yuan softened on Friday after the central bank set a weaker daily fixing, with the U.S. dollar headed for its second straight week of gains as traders awaited a U.S. jobs report for clues to the timing of Federal Reserve rate hikes. But the Chinese currency hit new multi-year highs against a trade-weighted currency basket after the Bank of England's decision to keep its rates steady hammered the pound. Reuters calculations showed China's trade-weighted CFETS yuan basket index rising to 100.83 on Friday morning, its highest since January 2016. "After expectations for a Bank of England rate hike fell through, the market may reevaluate the thinking of overseas central banks, and take a look at officials' comments and U.S. non-farm payrolls," said a trader at a foreign bank. The Bank of England kept interest rates on hold on Thursday, surprising investors who had been convinced that it would raise borrowing costs after the COVID-19 pandemic. Before the m