WSJ:China Yuan Falls to 9-Month Low Late on Weak Euro
Vs Parity Previous
USD/CNY Central Parity 6.3270 6.3112
USD/CNY OTC 0830 GMT 6.3864 +0.94% 6.3735
High 6.3889 +0.98%
Low 6.3823 +0.87%
SHANGHAI--China's yuan fell to a nine-month-low against the U.S. dollar late Monday as the central bank guided the Chinese currency much lower after the euro tumbled to multiyear lows against the dollar, yen and other major currencies on Friday.
On the over-the-counter market, the dollar was at CNY6.3864 around 0830 GMT, higher than Friday's close of CNY6.3735. It traded in a range of CNY6.3823 to CNY6.3889, the highest level since Oct. 21, when the dollar hit CNY6.3935.
The People's Bank of China set the dollar/yuan central parity rate at 6.3270, higher than Friday's 6.3112, following euro weakness after Spanish borrowing costs soared to a euro-era record. The euro ended the New York trading session at $1.2155 late Friday, down 1% from $1.2280 late Thursday. At around 0854 GMT, the euro was at $1.2115 after hitting a two-year low of $1.2103 in the Asian morning session.
A Shanghai-based trader with a foreign bank said he had previously expected the dollar-yuan pair to rise to around 6.4 by the end of this year, but he may need to adjust his forecast toward the upside as the pair has risen rapidly recently.
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 yuan has fallen 1.5% since the start of 2012.
Offshore, one-year dollar/yuan nondeliverable forward contracts rose to 6.4245/6.4275 from 6.4150/6.4180 late Friday, implying a 0.5% 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 CNY6.3865, higher than CNY6.3715 late Friday.
