SHANGHAI, Aug 7 (Reuters) - The yuan on Friday eased from a five-month high hit a day earlier as deteriorating Sino-U.S. relations dented investor sentiment, and the U.S. was broadly stronger against major currencies. U.S. President Donald Trump issued executive orders on Thursday banning any U.S. transactions with ByteDance, the Chinese company that owns video-sharing app TikTok, and Tencent , owner of the WeChat app, starting in 45 days. Iris Pang, Greater China economist at ING in Hong Kong, said China's technology war with the United States could hurt long-term Chinese economic growth and the yuan's strength. "We expect the technology war to persist for the rest of the year, which will continue to affect the yuan's performance," she said in a note. Gao Qi, FX strategist at Scotiabank in Singapore warned there were growing risks that tensions could increase ahead of the U.S. presidential election in November, while noting that a military conflict was in neither side's interest. Several yuan traders said they would be paying close heed to the upcoming review of the U.S.-China trade deal on Aug.15. The onshore yuan opened at 6.9559 per dollar and was changing hands at 6.9723 at midday, 185 pips weaker than the previous late session close. The spot yuan hit a high of 6.9350 per dollar on Thursday, the strongest level since March 10. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.9408 per dollar, 30 pips or 0.04% firmer than the previous fix of 6.9438, and was the strongest since March 10. By midday, the global dollar index rose to 93.11 from the previous close of 92.816. The offshore yuan was trading at 6.9679 per dollar. The yuan market at 0407 GMT: ONSHORE SPOT: Item Current Previous Change PBOC midpoint 6.9408 6.9438 0.04% Spot yuan 6.9723 6.9538 -0.27% Divergence from 0.45% midpoint* Spot change YTD -0.13% Spot change since 2005 18.71% revaluation Key indexes: Item Current Previous Change Thomson 91.55 91.76 -0.2 Reuters/HKEX CNH index Dollar index 93.11 92.816 0.3 *Divergence of the dollar/yuan exchange rate. Negative number indicates that spot yuan is trading stronger than the midpoint. The People's Bank of China (PBOC) allows the exchange rate to rise or fall 2% from official midpoint rate it sets each morning. OFFSHORE CNH MARKET Instrument Current Difference from onshore Offshore spot yuan 6.9679 0.06% * Offshore 7.125 -2.59% non-deliverable forwards ** *Premium for offshore spot over onshore **Figure reflects difference from PBOC's official midpoint, since non-deliverable forwards are settled against the midpoint. . (Reporting by Winni Zhou and Andrew Galbraith; Editing by Simon Cameron-Moore)
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