WSJ:China Yuan Up Late on PBOC Guidance, Euro Gains
Vs Parity Previous
USD/CNY Central Parity 6.3348 6.3418
USD/CNY OTC 0830 GMT 6.3518 +0.27% 6.3562
High 6.3545 +0.31%
Low 6.3504 +0.25%
SHANGHAI--China's yuan rose against the U.S. dollar late Wednesday, after the central bank guided it higher via its daily reference rate following a rebound in the euro overnight.
On the over-the-counter market, the dollar was at CNY6.3518 around 0830 GMT, lower than Tuesday's close of CNY6.3562. It traded in a range of CNY6.3504 to CNY6.3545.
The People's Bank of China set the dollar/yuan central parity rate at 6.3348, lower than Tuesday's 6.3418, following the euro's overnight strength.
"The spot pair didn't fall too much partly because the fixing failed to reflect the [extent of the] euro's gains overseas, which indicates the central bank's intention to keep the yuan stable," said a Shanghai-based trader with foreign bank.
The euro rallied against other major currencies Tuesday as investors became more hopeful that European Union officials can cobble together a plan to deal with the euro zone's ongoing sovereign debt crisis. The euro ended the New York session at $1.2472, 1% higher than $1.2346 late Monday; it was at $1.2476 at 0830 GMT.
Still, the yuan has fallen 0.9% since the start of 2012.
Offshore, one-year dollar/yuan nondeliverable forward contracts fell to 6.4425/6.4455 from 6.4440/6.4470 late Tuesday, implying a 1.4% 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 CNY6.3575, lower than CNY6.3588 late Tuesday.
