China's yuan rose against the U.S. dollar late Wednesday after the central bank guided the currency stronger to track the euro's strength overseas.
In the over-the-counter market, the dollar was at CNY6.2204 around 0830 GMT, lower than Tuesday's close of CNY6.2243. It traded in a range of CNY6.2183 to CNY6.2215.
The People's Bank of China set the dollar/yuan central parity rate at 6.2806, lower than Tuesday's 6.2851, following the euro's strength overseas. The euro traded up to $1.3498, its highest level since December 2011, before ending the session at $1.3492, up from $1.3457 late Monday. At 0830 GMT, the euro was at $1.3505.
"There was heavy dollar selling from corporates as investors expect the yuan to record a mild appreciation this year," a Shanghai-based trader with a foreign bank said.
The yuan has risen 0.2% against the dollar since the start of 2013.
Offshore, one-year dollar/yuan nondeliverable forward contracts fell to 6.3070/6.3100 from 6.3134/6.3177 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 CNY6.2160, lower than CNY6.2310 late Tuesday.
