Vs Parity Pvs USD/CNY Central Parity 6.3585 6.3554 USD/CNY OTC 0830 GMT 6.3841 +0.40% 6.3750 High 6.3863 +0.44% Low 6.3727 +0.22% SHANGHAI (Dow Jones)--China's yuan fell against the U.S. dollar Monday, tracking a weaker reference rate from China's central bank as investors sought safe-haven assets and officials cast doubt on a report the International Monetary Fund was preparing an aid package for Italy. On the over-the-counter market, the dollar was at CNY6.3841 around 0830 GMT, up from CNY6.3750 late Friday. It traded in a range of CNY6.3727 to CNY6.3863. The People's Bank of China fixed the dollar/yuan central parity rate at 6.3585 Monday, up from 6.3554 Friday, after the dollar strengthened against a basket of currencies Friday. The euro pared early gains against the dollar Monday after people familiar with international discussions on the euro-zone sovereign debt crisis told Dow Jones Newswires that a report the IMF would offer Italy an aid package wasn't credible. A newspaper in Turin, Italy, citing IMF sources, Sunday reported the fund could offer Italy EUR400 billion to EUR600 billion in financial aid. "Like elsewhere, the onshore market is driven by the euro-zone situation, which has boosted the dollar broadly. The PBOC has let the dollar rise against the yuan, but it will be highly unlikely that the yuan will be allowed to weaken to 6.40 as a relatively steady yuan is still the goal," a Shanghai-based trader at an Asian bank said. The yuan is now up 3.2% against the dollar this year and 6.9% since June 2010, when China loosened its control of its currency. Meanwhile, trading of the Australian dollar and the Canadian dollar against the yuan began Monday. Dealers said trading volume was low but was expected to grow due to China's large purchases of commodities from the two nations. Offshore, the yuan fell against the U.S. dollar in both the nondeliverable forward and spot markets, tracking the onshore market. One-year dollar-yuan nondeliverable forward contracts rose to 6.4050/6.4100 from 6.3950/6.4000 late Friday, implying a 0.5% decline in the yuan over the next year. In Hong Kong, where the yuan floats freely, the U.S. dollar was at CNY6.3975, up from CNY6.3930 late Friday. -By Jean Yung, Dow Jones Newswires; 8621 6120-1200; jean.yung@dowjones.com

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