WSJ:China Yuan up Late on PBOC Guidance, Euro Gains
Vs Parity Previous
USD/CNY Central Parity 6.3303 6.3325
USD/CNY OTC 0830 GMT 6.3794 +0.78% 6.3807
High 6.3800 +0.79%
Low 6.3768 +0.73%
SHANGHAI--China's yuan rose against the U.S. dollar late Monday after the central bank guided the Chinese currency higher following the euro's overnight gains.
On the over-the-counter market, the dollar was at CNY6.3794 around 0830 GMT, lower than Friday's close of CNY6.3807. It traded in a range of CNY6.3768 to CNY6.3800.
The People's Bank of China set the dollar/yuan central parity rate at 6.3303, lower than Friday's 6.3325, after the euro jumped to a three-week high against the dollar Friday as comments from several European officials lifted expectations that the European Central Bank will do more to support the common currency.
"The yuan didn't rise too much as the euro has retreated from (Friday's) high levels," said a Shanghai-based trader with local bank.
The euro ended the New York session at $1.2322 Friday, up from $1.2282 late Thursday. At around 0830 GMT, the euro was at $1.2262.
Traders also said onshore currency trading has been quiet likely because much attention has been drawn to the Olympic Games.
The yuan has fallen 1.3% since the start of 2012.
Offshore, one-year dollar/yuan nondeliverable forward contracts are largely unchanged at 6.4340/6.4370, compared to 6.4340/6.4360 late Friday, implying a 0.9% 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 CNY6.3835, higher than CNY6.3805 late Friday.
