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WSJ:China Yuan Down Late On PBOC Guidance, Dollar Strength
 

Vs Parity Previous
USD/CNY Central Parity 6.3016 6.2919
USD/CNY OTC 0830 GMT 6.3002 -0.02% 6.2936
High 6.3013 -0.00%
Low 6.2982 -0.05%

SHANGHAI (Dow Jones)--China's yuan fell against the U.S. dollar late Thursday after the central bank guided the currency lower via its daily reference rate.

On the over-the-counter market, the dollar was at CNY6.3002 around 0830 GMT, up from CNY6.2936 around the same time Wednesday. It traded in a range of CNY6.2982 to CNY6.3013.

The People's Bank of China set the dollar-yuan central parity rate at 6.3016, up from Wednesday's 6.2919, following the dollar's gains overseas. The ICE Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at 78.806 late Wednesday in New York, from 78.273 late Tuesday. At around 0830 GMT, the dollar index was at 78.736.

"Trading is thin today, as there is not much demand from customers at the start of each month," said a Beijing-based local bank trader.

The yuan has risen 8.4% against the U.S. unit since June 2010, when China effectively ended its currency's two-year-long peg to the dollar and vowed to make the yuan more flexible.

Offshore, one-year dollar-yuan nondeliverable forwards rose to 6.2860/6.2890 from 6.2800/6.2830 late Wednesday, implying a 0.2% rise by the yuan against the dollar over the next year.

In the offshore yuan market in Hong Kong, where the Chinese currency floats freely, the dollar was at CNY6.2988 late up from CNY6.2935 late Wednesday.

-Wynne Wang contributed to this article, Dow Jones Newswires; (86-21) 6120-1200; wynne.wang@dowjones.com
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