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SHANGHAI, Dec 6 (Reuters) - The yuan was little changed on Friday against the dollar, but is headed for its tenth straight weekly loss amid concerns that new tariff <br>
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threatened by President-elect Donald Trump will heighten strains on the struggling Chinese <br>
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economy.<br>
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Analysts expect the dollar to remain firm as Trump's policies are expected to drive up U.S.<br>
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inflation, but they believe Beijing will prevent the yuan from falling too much.<br>
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"We anticipate some depreciation pressure in an expected strong dollar environment," Lynn <br>
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Song, Greater China chief economist at ING, said in a note.<br>
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However, "we don't expect an intentional large-scale depreciation and think the yuan will remain a low-volatility currency vis-à-vis most other Asian currencies." The yuan was <br>
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changing hands at 7.2549 per dollar around midday, little moved from the previous close.<br>
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Although the currency has rebounded from a one-year low of <br>
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7.2996 hit on Tuesday, it is poised to register its longest weekly losing streak since <br>
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2018. The dollar index fell to one-week low overnight and "the USD's consolidation should unwind the upside pressure building" in the yuan, aided by ongoing attempts by China's central bank to <br>
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restrain its decline, said Alvin Tan, strategist at RBC Capital Markets.<br>
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Recent data has painted a mixed picture of China's economic recovery, with manufacturing activities improving, but property sales <br>
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in many Chinese cities remaining weak. China's "economic landscape is unarguably dull, and the absence of excitement is perhaps the most salient feature," said <br>
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John Browning, managing director of BANDS Financial.<br>
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He doesn't expect huge stimulus to be announced during next week's Central Economic Work Conference, <br>
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as "Beijing's largesse will be reserved until after Trump is restored to the White House and the trade war formally begins." Top <br>
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policymakers will gather at the conference to agree on major economic goals for next year.<br>
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But the target for 2025 growth, one of the most closely-watched indicators globally for <br>
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clues of Beijing's near-term policy intentions, likely will not be officially announced until an annual parliament meeting in March.<br>
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During Trump's first term as president, the yuan weakened about 5% against the dollar after the initial round of U.S.<br>
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tariffs on Chinese goods in 2018, and fell another 1.5% a year later when trade tensions escalated.<br>
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Growth worries and expectations of further monetary easing by Beijing pushed China's <br>
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10-year treasury yields below 2% to record lows <br>
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this week, worsening the yield disadvantage against the U.S., and exerting downward pressure on the yuan. ING's Song expects the <br>
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onshore yuan to move within a band between 7.00-7.40 per dollar, but could fall further to 7.50 "if tariffs come in earlier or more aggressive than our forecasts." LEVELS AT 03:<br>
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47 GMT GMT INSTRUME CURRENT UP/DOWN( % CHANGE DAY'S DAY'S <br>
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LOW NT vs USD -) VS.<br>
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YR-TO-DATE HIGH PREVIOUS CLOSE % Spot 7.255 0.09 -2.11 7.2518 7.2675 yuan <CNY=CFX S Offshore <br>
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7.2615 0.03 -1.87 7.2574 7.2733 yuan spot (Reporting by Shanghai newsroom; Editing by Kim <br>
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Coghill)<br>
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SHANGHAI, Dec 6 (Reuters) -