Yuan on track to snap 4-week losing streak after GDP surprise

          HONG KONG, Jan 17 (Reuters) - The yuan strengthened
against the dollar on Friday and looked set for its first weekly
gain in over a month, after a slew of data showed China's
economy ended 2024 on better footing than expected.
    China's economy grew 5.4% in the fourth quarter from a year
earlier, and expanded 5.0% for the full-year 2024, meeting the
government's annual growth target of around 5%, data from the
National Bureau of Statistics data showed on Friday.
    Factory output and retail sales in December also came above
expectations, suggested the economy gained traction heading into
the new year thanks to a flurry of government support measures.
    By 0230 GMT, the yuan was 0.06% higher at 7.3271
to the dollar, 45 pips firmer than the previous late session
close and on track to end a four-week losing streak.
    Still, the currency has lost 0.4% against the dollar this
month to hover near a 16-month low, as outflow pressure remains
amid fears of U.S. tariffs and falling bond yields at home.
    Most investors expect the yuan to continue to weaken against
the dollar and the 10-year government bond yield to trend lower
due to persistent growth pressure this year, Goldman Sachs said
in a note.
    Chinese government 10-year bond yields fell 2.4
basis points to 1.63%. The yield on similar U.S. government
benchmark debt was 4.6%.
    Prior to the market opening, the People's Bank of China set
the midpoint rate, around which the yuan is allowed
to trade in a 2% band, at 7.1889 per dollar.
    The central bank has kept a firm hand on its daily yuan
official guidance, suggesting it is unwilling to see a big
depreciation before U.S. President-elect Donald Trump takes
office on Jan. 20, analysts said.
    The offshore yuan traded at 7.3397 yuan per dollar,
up about 0.08% in Asian trade.
    The dollar's six-currency index was 0.055% lower at
108.91.

Key onshore vs offshore levels:
    * Overnight dollar/yuan swap onshore -15.30 pips vs.
offshore
-15.30
    * Three-month SHIBOR 1.7 % vs. 3-month CNH HIBOR 3
%

LEVELS AT 02:29 GMT
 INSTRUMENT   CURRENT    UP/DOWN(-)    % CHANGE    DAY'S HIGH  DAY'S
              vs USD     VS. PREVIOUS  YR-TO-DATE              LOW
                         CLOSE %
 Spot yuan    7.3271     0.06          -0.38       7.3226      7.332
 <CNY=CFXS
 Offshore     7.3392     0.08          -0.05       7.3367      7.3469
 yuan spot


 (Reporting by Jiaxing Li; Editing by Kim Coghill)