Vs Parity Pvs USD/CNY Central Parity 6.4665 6.4640 USD/CNY OTC 0830 GMT 6.4630 -0.05% 6.4576 High 6.4643 -0.03% Low 6.4605 -0.09% SHANGHAI (Dow Jones)--China's yuan fell against the U.S. dollar late Friday after the country's central bank guided the currency higher through its daily reference rate from a record low the previous day, and after gains in the dollar offshore. On the over-the-counter market, the dollar was at CNY6.4630 around 0830 GMT, up from Thursday's close of CNY6.4576. It traded in a range of CNY6.4605 to CNY6.4643. The yuan has risen 5.3% against the U.S. unit since June 2010, when China effectively ended its currency's two-year-long peg to the dollar and vowed to make the yuan more flexible. The People's Bank of China set the dollar-yuan central parity rate at 6.4665, up from Thursday's record low of 6.4640, following the dollar's gains overseas. The ICE Dollar Index, which tracks the U.S. dollar against a trade-weighted basket of currencies, was at 75.208 late Thursday in New York, up from 75.159 late Wednesday. At 0830 GMT, the dollar index was at 75.345. "The fixing was set only 25 pips higher. The pair has been consolidating for the last couple of weeks and I think the PBOC will allow the yuan to appreciate more next week," said a Shanghai-based trader at an Asian bank. Traders said that volatility in the dollar and the euro offshore had an increased impact on the spot market in recent sessions, but the underlying expectation for yuan appreciation of 3% to 5% this year remains on track. "There's been more dollar buying today following the fixing, and the spot is still moving in a reasonable range given that the PBOC doesn't want overly quick gains in the yuan that could hurt Chinese business and exports," said a Shanghai-based trader at a local bank. Offshore, one-year dollar-yuan nondeliverable forwards tracked the spot market and rose to 6.3900/6.3970 from 6.3820/6.3890 late Thursday, implying a 1.1% rise by the yuan against the U.S. currency over the next year. In the offshore yuan market in Hong Kong, where the Chinese currency floats freely, the dollar-yuan exchange rate was at 6.4625 late Friday, up from 6.4620 late Thursday. -By Esther Fung, Dow Jones Newswires; 86-21-6120-1200; esther.fung@dowjones.com

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