SHANGHAI (Dow Jones)--China's yuan fell against the U.S. dollar late Wednesday following the dollar's broad gains against the euro and other major currencies.
On the over-the-counter market, the dollar was at CNY6.3345 around 0830 GMT, higher than Tuesday's close of CNY6.3231. It traded in a range of CNY6.3281 to CNY6.3395.
The People's Bank of China set the dollar/yuan central parity rate at 6.3208, higher than Tuesday's 6.3077, following dollar strength overseas. The ICE Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at 81.625 late Tuesday in New York, higher than 80.936 late Monday. Around 0830 GMT, the index was at 81.822.
"According to what we see in the market, there is no sign of capital flight in this round of yuan sell-offs. We are simply tracking the dollar's performance overseas," said a Shanghai-based trader at a foreign bank.
He added the central bank hasn't intervened in the market for a long time and is probably happy to see the yuan's weakness, which will help exporters.
The yuan has fallen 0.6% since the start of 2012.
Offshore, one-year dollar/yuan nondeliverable forward contracts rose to 6.3900/6.3955 from 6.3720/6.3820 late Tuesday, implying a 0.9% fall by the yuan over the next year.
In the offshore yuan market in Hong Kong, where the Chinese currency floats freely, the dollar was at CNY6.3300 late Wednesday, higher than CNY6.3225 late Tuesday.
-Wynne Wang contributed to this article, Dow Jones Newswires; (86-21) 6120-1200; wynne.wang@dowjones.com
