WSJ:China Yuan up Late on PBOC Guidance, Dollar Weakness
Vs Parity Previous
USD/CNY Central Parity 6.3276 6.3308
USD/CNY OTC 0830 GMT 6.3645 +0.58% 6.3690
High 6.3685 +0.65%
Low 6.3633 +0.56%
SHANGHAI--China's yuan rose against the U.S. dollar late Monday after the central bank guided the yuan higher to track the U.S. dollar's broad weakness overseas.
On the over-the-counter market, the dollar was at CNY6.3645 around 0830 GMT, lower than Friday's close of CNY6.3690. It traded in a range of CNY6.3633 to CNY6.3685.
The People's Bank of China set the dollar/yuan central parity rate at 6.3276, lower than Friday's 6.3308, following dollar weakness overseas. The ICE Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at 82.798 late Friday in New York, from about 83.043 late Thursday in New York. At 0930 GMT, the index was at 82.820.
The dollar stumbled after the U.S. jobs report on Friday fueled speculation the Federal Reserve will decide to use more monetary stimulus to boost growth.
"The setback for the dollar is temporary and it will continue to rise after a few days' break," said a Shanghai-based trader with a foreign bank, adding there are still many uncertainties in the global market.
The yuan has fallen 1.1% since the start of 2012.
Offshore, one-year dollar/yuan nondeliverable forward contracts was at 6.4325/6.4375 from 6.4330/6.4360 late Friday, implying a 1.1% 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 CNY6.3695 late Monday, higher than CNY6.3670 late Friday.
