WSJ:China Yuan Up on Positive Economic Data, Dollar Sales
Vs Parity Previous
USD/CNY Central Parity 6.1729 6.1718
USD/CNY OTC 0830 GMT 6.1201 -0.86% 6.1206
High 6.1217 -0.83%
Low 6.1175 -0.90%
SHANGHAI--China's yuan rose slightly against the U.S. dollar Wednesday after fresh economic data showed that China remains on track to post strong growth in the third quarter, and on stronger dollar sales by corporates.
On the over-the-counter market, the dollar was at CNY6.1201 around 0830 GMT, lower than Tuesday's close of CNY6.1206. It traded in a range of CNY6.1175 to CNY6.1217.
The People's Bank of China set the dollar/yuan central parity rate at 6.1729, higher than Tuesday's 6.1718 following dollar strength overseas. The Wall Street Journal Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at 74.574 late Tuesday in New York, higher than 74.518 late Monday. At 0830 GMT, the index was at 74.482.
The HSBC China Services Purchasing Managers' Index rose to 52.8 in August, hitting a five-month high and rising from 51.3 in July, HSBC Holdings PLC said Wednesday.
A reading above 50 in the gauge of nationwide service-sector activity indicates on-month expansion. Wednesday's data follows a pick-up in August's manufacturing PMIs released earlier this week.
"Policymakers want the yuan to be stable, given wider uncertainties abroad, including possible U.S. military intervention in Syria. Domestically, I don't think China is under pressure to weaken the yuan to boost exports," said a Shanghai-based trader at an Asian bank, noting the central bank currently makes only modest changes in the daily fixings.
China also wants to keep the yuan steady amid weakness in other emerging market currencies, the trader added.
The yuan has risen 1.8% since the start of 2013.
Offshore, one-year dollar/yuan nondeliverable forward contracts fell to 6.2340/6.2380 from 6.2347/6.2384 late Tuesday, implying a 1.8% 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 CNY6.1143 late Wednesday, lower than CNY6.1153 late Tuesday.
