WSJ:China Yuan Up Late on PBOC Guidance, Stronger Euro
Vs Parity Previous
USD/CNY Central Parity 6.3391 6.3411
USD/CNY OTC 0830 GMT 6.3517 +0.20% 6.3530
High 6.3529 +0.22%
Low 6.3443 +0.08%
SHANGHAI--China's yuan rose against the U.S. dollar late Wednesday after the central bank guided its currency higher following the euro's gains overnight.
The People's Bank of China set the dollar/yuan central parity rate at 6.3391, down from Tuesday's 6.3411, after the euro strengthened on two successful euro-zone auctions.
On the over-the-counter market, the U.S. unit was at CNY6.3517 around 0830 GMT, weaker than Tuesday's close of CNY6.3530. It traded in a range of CNY6.3443 to CNY6.3529.
A Shanghai-based trader with a local bank noted that "the general trend is that market prices [of the dollar-yuan pair] are moving toward the central parity." The spot pair used to trade 400 to 500 pips above its daily fixing as recently as late July, but the spread has since narrowed to around 100 pips, he said.
The yuan has fallen 0.9% since the start of 2012.
Offshore, one-year dollar/yuan nondeliverable forward contracts were at 6.4483/6.4508 from 6.4470/6.4550 late Tuesday, implying a 1.5% 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 CNY6.3560, lower than CNY6.3620 late Tuesday.
