FOREX SIGNALS-Dollar up in Asia as China loosens policy, yuan slips
* Yuan fixed at 6.8957, lowest since May last year
The dollar edged higher on Monday as China followed an easing in domestic policy by allowing its yuan to fall, though the drop was not as sharp as some had feared.
The fix left the dollar trading at 6.9039 in the spot market CNH= , but off an early top of 6.9157.
Any drop in the yuan tends to undermine other emerging currencies as they need to depreciate to keep exports competitive. The Indonesian rupiah IDR= , for instance, slid to its lowest in over two decades on Monday.
Those flows in turn support the safe-haven yen and the dollar, particularly when U.S. yields are rising.
