Yuan retreats from four-month high

China's yuan retreated from a four-month high as concern domestic growth is slowing countered optimism the US Federal Reserve's latest stimulus measures will spur fund flows to emerging markets. Interest-rate swaps were steady.

Citigroup Inc cut its 2012 expansion forecast for China to 7.6 percent from 8 percent, according to a research report.

The Dollar Index, which tracks the greenback against major currencies, has fallen 0.7 percent since Thursday, when the Fed announced a third round of asset purchases, a policy known as quantitative easing that boosts the supply of the US currency, to stimulate the world's largest economy.

"While global risk appetite has greatly improved, the sentiment over China's growth hasn't," said Tommy Ong, a Hong Kong-based senior vice-president of treasury and markets at DBS Bank (Hong Kong) Ltd.

"A further weakening in the dollar could lead the yuan to trade below 6.3" toward year-end, he said.

The yuan slipped 0.02 percent to 6.3157 per dollar as of 10:54 am in Shanghai, according to the China Foreign Exchange Trade System. It touched 6.3122 earlier, the strongest level since May.