Vs Parity Previous USD/CNY Central Parity 6.3029 6.3082 USD/CNY OTC 0830 GMT 6.3241 +0.34% 6.3233 High 6.3271 +0.38% Low 6.3123 +0.15% SHANGHAI (Dow Jones)--China's yuan was lower against the U.S. dollar late Tuesday due to strong corporate demand for the U.S. currency, despite the central bank's efforts to guide the Chinese currency higher via its daily reference rate. On the over-the-counter market, the dollar was at CNY6.3241 around 0830 GMT, up from Monday's close of CNY6.3233. It traded in a CNY6.3123-CNY6.3271 range. The People's Bank of China set the dollar-yuan central parity rate at 6.3029, down from Monday's 6.3082, following the dollar's weakness overseas. The ICE Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at 79.453 late Monday in New York, down from 79.782 late Friday. At 0911 GMT, the dollar index was at 79.558. Traders said dollar demand emerged after the central parity rate was announced as the stronger yuan implied by the parity rate made it cheaper to buy the U.S. currency. "Dollar demand is so strong, and it's very unusual. My guess is China's imports may still be stronger than exports this month, so trading companies likely need dollars to settle bills," said a Guangdong-based trader at a foreign bank. China posted a trade deficit of $31.48 billion in February, the largest monthly deficit in Dow Jones Newswires data dating back to 2000, when the overall economy was much smaller, and likely the largest ever. The yuan has depreciated 0.5% against the U.S. currency since the start of this year. Offshore, one-year dollar-yuan nondeliverable forwards rose to 6.3345/6.3385 from 6.3190/6.3290 late Monday, implying a 0.2% decline 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 CNY6.3230 late Tuesday, up from CNY6.3175. -Wynne Wang contributed to this article, Dow Jones Newswires; (86-21) 6120-1200; wynne.wang@dowjones.com

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