The Chinese yuan weakened to a near one-month low on May 24, driven by a strong dollar and tensions in the Taiwan Strait.

Prior to market opening, the People's Bank of China set the midpoint rate weaker at 7.1102 per US dollar.

The spot yuan opened at 7.2420 per dollar and traded at 7.2455 at midday.

The dollar saw its largest weekly rise in a month and a half after strong US economic data and hawkish Fed minutes, reducing expectations for rate cuts in 2024.