The currency is allowed to trade in a band of 2 percent on either side of the midpoint, which is set each day.TOUGH TO PREDICTOne trader at a European bank in Shanghai said he thought the yuan could potentially continue to depreciate against the dollar unless the central bank took steps to stop the slide. "It's hard to predict how the yuan will move today, and so far we haven't seen any central bank actions. "We will have to see what the next threshold is," the trader added.On Friday, the offshore yuan slumped to its lowest rate against the dollar since Jan. 7. Offshore yuan mostly trades in Hong Kong and is not bound by the Chinese central bank's tight trading restrictions.Hong Kong markets are closed Monday for a holiday.In the weeks before onshore markets closed for China's long holiday, the spot rate flirted with 6.7. The last close was at 6.6745.The yuan is expected to fall another 3 percent by next September, according to a Reuters poll of more than 70 foreign exchange strategists issued on Thursday.

Source: The Star October 10, 2016 03:11 UTC