WSJ:Yuan Hits Lower End of Trading Band Vs Dollar for First Time Since Band Widened
By Shen Hong
SHANGHAI--China's yuan hit the lower limit of its daily trading band against the U.S. dollar late Friday, the first time it has done so since Beijing doubled the trading range in April, as unabated worries over the euro zone and China's own economy boosted demand for the U.S. currency.
The breakthrough came after the yuan stayed just a whisker away from the lower end of the trading band in each of the past five trading sessions.
The dollar-yuan exchange rate closed at 6.3735 at 0830 GMT, a touch off the intraday high of 6.3743, the topmost the pair was allowed to hit Friday. The pair ended Thursday at 6.3734.
The dollar-yuan rate is allowed to move 1% above or below the central parity, the daily reference level.
The People's Bank of China set the dollar/yuan central parity rate at 6.3112 Friday, lower than Thursday's 6.3126.
The pair has traded above 0.90% from the central parity in each of the past five trading days, due to strong corporate demand for the U.S. dollar, traders said.
