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SHANGHAI, Oct 9 (Reuters) - China's yuan held steady against the U.S.<br>
<br>
<br>
<br>
dollar on Wednesday, as investors awaited more stimulus from the world's second-largest economy and the <br>
<br>
Federal Reserve's September meeting minutes due later <br>
<br>
in the day to gauge its policy path. The dollar held steady, giving some relief to the yuan after a sharp <br>
<br>
rally to a seven-week high last week.<br>
<br>
Spot yuan opened at 7.0650 per dollar and was last trading 12 pips lower than the previous late session close at 7.066.<br>
<br>
Prior to the market opening, the People's Bank of China (PBOC) <br>
<br>
set the midpoint rate, around which the yuan is allowed to trade in a 2% band, at <br>
<br>
7.0568 per dollar, only 3 pips weaker than a Reuters' <br>
<br>
estimate.<br>
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<br>
<br>
China's blue-chip CSI300 index dropped for the first time since Sept.<br>
<br>
13, poised to snapping a 10-day winning streak, after officials on Tuesday failed to offer much new on stimulus plans to revive the economy.<br>
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<br>
<br>
The yuan is down 0.7% against the dollar so far this month, due to broad dollar strength, but the <br>
<br>
currency has 0.5% firmed for the year-to-date.<br>
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<br>
<br>
<br>
China equities' recent rally has raised the bar for an upside surprise from expected <br>
<br>
fiscal stimulus news, said UBS strategists led by Rohit Arora, adding that the offshore yuan's near-term <br>
<br>
risk reward is unattractive. "Historically, fizzling of China equities' spurts acted as a bigger drag on CNH vis-à-vis the tailwinds from equities' surge," the strategists said.<br>
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<br>
<br>
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Nevertheless, market participants are still awaiting additional stimulus measures that could help further lift China asset sentiment.<br>
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Citi FX traders think the offshore yuan could trade <br>
<br>
well if local equities remain supported, similar to what happened in Nov.<br>
<br>
2022 - Jan. 2023, according to the bank's note to <br>
<br>
clients.<br>
<br>
The offshore yuan traded at 7.0682 yuan per dollar, up about 0.09% in Asian trade.<br>
<br>
The dollar's six-currency index was 0.039% higher at 102.53.<br>
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LEVELS AT 02:44 GMT INSTRUM CURRENT UP/DOWN( % DAY'S DAY'S <br>
<br>
ENT vs USD -) VS. CHANGE HIGH LOW PREVIOUS YR-TO-D CLOSE % ATE Spot <br>
<br>
7.066 -0.07 0.51 7.063 7.0697 yuan <CNY=CF XS Offshor 7.071 0.09 0.81 7.064 7.0741 e yuan spot <CNH=D3 > (Reporting by <br>
<br>
Shanghai Newsroom; Editing by Kim Coghill)<br>
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SHANGHAI, Oct 9 (Reuters) -