WSJ:China Yuan Down on PBOC Guidance Tracking Strong Dollar
Vs Parity Previous
USD/CNY Central Parity 6.2072 6.2016
USD/CNY OTC 0830 GMT 6.1468 -0.97% 6.1417
High 6.1498 -0.92%
Low 6.1455 -0.99%
SHANGHAI--China's yuan fell against the U.S. dollar late Monday as the central bank guided it lower via its daily reference rate to track the dollar's broad gains overseas.
On the over-the-counter market, the dollar was at CNY6.1468 around 0830 GMT, up from Friday's close of CNY6.1417. It traded in a CNY6.1455-CNY6.1498 range.
The People's Bank of China set the dollar/yuan central parity rate at 6.2072, higher than Friday's 6.2016 after the dollar strengthened overseas.
Traders said the dollar could notch further gains as conditions improve in the U.S. The Wall Street Journal reported earlier that the U.S. Federal Reserve has drawn up a strategy for winding down the bond-buying program undertaken to shore up the economy.
"It seems the yuan's recent rally needs to stop for a while given the dramatic changes in global forex markets," said a Shanghai-based foreign bank trader.
The yuan had hit record high levels on three consecutive days last week on the PBOC's guidance. The rally halted Friday after the dollar turned broadly stronger against most majors.
The yuan has risen 1.4% against the dollar so far this year.
Offshore, one-year dollar/yuan nondeliverable forward contracts rose to 6.2250/6.2290 from 6.2200/6.2220 late Friday, implying a 1.3% 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 CNY6.1450, little changed from CNY6.1448 late Friday.
