China's yuan firms despite weaker mid-point, but downward pressure builds

China's yuan strengthened against the dollar on Friday despite a weaker mid-point set by the central bank, as some analysts expected the Chinese economy to withstand the fallout from the Omicron variant better than its peers.

The yuan opened at 6.3771 per dollar and was changing hands at 6.3718 at midday, stronger than the previous late session close.

The strength comes even after the People's Bank of China set the midpoint rate at 6.3738 per dollar prior to market open, weaker than the previous fix of 6.3719.

But banks polled by Reuters expected the yuan to decline against the greenback next year as