China's yuan was flat against the U.S. dollar late Thursday as corporate dollar buying offset the central bank's efforts to guide the yuan higher via a daily reference rate.
On the over-the-counter market, the dollar was at CNY6.3635 around 0830 GMT, unchanged from Wednesday's close. It traded in a range of CNY6.3562 to CNY6.3665.
The People's Bank of China set the dollar/yuan central parity rate at 6.3170, lower than Wednesday's 6.3261, after the euro's gains amid rising expectations that the European Central Bank and Federal Reserve are prepared to take steps that would boost the global economy. The euro was at $1.2581 late Wednesday in New York, from $1.2452 late Tuesday. At 0830 GMT, the euro was at $1.2561.
But the dollar bounced back from its losses in the morning, as corporate dollar demand set in the afternoon.
"I think it's mainly the oil companies who need the dollars to import. They come out when the dollar is cheap," said a Shanghai-based foreign bank trader with a foreign bank.
The yuan has fallen 1.1% since the start of 2012.
Offshore, one-year dollar/yuan nondeliverable forward contracts fell to 6.4130/6.4160 from 6.4180/6.4220 late Wednesday, implying a 0.8% 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 CNY6.3610 late Thursday, lower than CNY6.3650 late Wednesday.
-Wynne Wang contributed to this article, Dow Jones Newswires; (86-21) 6120-1200; wynne.wang@dowjones.com
