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Chinese Yuan

falls against US dollar

SHANGHAI: The Chinese yuan ended down at 8.3080 against the US dollar from Tuesday's rate of 8.3059 on the Shanghai-based interbank market.

They yuan opened lower at 8.3061 and hit an intra-day low of 8.3133, the lowest level in the past three months.

It then trimmed losses to reach a high of 8.3045 but later fell back to fluctuate around 8.3060.

"Few recent daily movements were seen so sharp like today's trading," said one trader. "The yuan slipped in the first half and then climbed up rapidly."

Traders said there had been expectations that the dollar would rise in line with world markets, and this led to the yuan's sharp losses early in the sessions. But dollar selling later on forced the dollar down.

The People's Bank of China continued playing the role of a rate stabliser, intervening from time to time, traders said.

They said they believed the yuan would move around 8.3100 in the short term on the bank's expected intervention.

Against the yen, the yuan closed at an intra-day high of 8.6732 per 100 yen, from Tuesday's 8.8525. It ended at 1.0731 to the Hong Kong dollar, from 1.0729.-Reuter