WSJ:China Yuan Steady Late As Dollar Demand Offsets Lower Fixing
Vs Parity Previous
USD/CNY Central Parity 6.3082 6.3200
USD/CNY OTC 0830 GMT 6.3233 +0.24% 6.3227
High 6.3251 +0.27%
Low 6.3103 +0.03%
SHANGHAI (Dow Jones)--China's yuan is steady against the U.S. dollar late Monday as dollar purchases by import companies offset the central bank's guidance toward a weaker greenback.
On the over-the-counter market, the dollar was at CNY6.3233 around 0830 GMT, up from Friday's close of CNY6.3227. It traded in a range of CNY6.3103 to CNY6.3251.
The People's Bank of China set the dollar-yuan central parity rate at 6.3082, down from Friday's 6.3200, following the dollar's weakness overseas. The ICE Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at 79.782 late Friday in New York, from about 80.150 late Thursday. At 0910 GMT, the dollar index was at 79.840.
"We saw strong dollar buying after the central parity was set much lower today. Clients now tend to buy if the fixing is lower than CNY6.3100 and sell if the fixing is higher than CNY6.3300," said a Beijing-based trader at a foreign bank.
The yuan has depreciated 0.46% against the U.S. unit since the start of this year. It has gained 7.95% against the U.S. unit since June 2010, when China ended its currency's two-year peg to the dollar and vowed to make the yuan more flexible.
Offshore, one-year dollar-yuan nondeliverable forwards fell to 6.3190/6.3290 from 6.3260/6.3300 late Friday, and implying a 0.07% 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 CNY6.3175 late Monday, down from CNY6,3255 late Friday.
-Wynne Wang contributed to this article, Dow Jones Newswires; (86-21) 6120-1200; wynne.wang@dowjones.com