WSJ:China Yuan Down Late on PBOC Guidance, Weak Euro
Vs Parity Previous
USD/CNY Central Parity 6.3392 6.3305
USD/CNY OTC 0830 GMT 6.3568 +0.28% 6.3545
High 6.3592 +0.32%
Low 6.3559 +0.26%
SHANGHAI--China's yuan fell against the U.S. dollar late Monday after the central bank guided the Chinese currency lower following the euro's decline against the dollar Friday amid signs of increased tension between Greece and the European Union.
On the over-the-counter market, the dollar was at CNY6.3568 around 0830 GMT, higher than Friday's close of CNY6.3545. It traded in a range of CNY6.3559 to CNY6.3592.
The People's Bank of China set the dollar/yuan central parity rate at 6.3392, higher than Friday's 6.3305, following euro weakness overseas. The euro was at $1.2512 late Friday in New York, lower than $1.2564 late Thursday.
Following a meeting with Greek Prime Minister Antonis Samaras in Berlin, German Chancellor Angela Merkel said she wants to keep the Mediterranean country in the monetary union. However, she was noncommittal on Greece's pleas for more time to overhaul its economy and repay its debts to the European Union. At 0913 GMT, the euro was at $1.2522.
Traders said the onshore market moved in a small range ahead of clearer direction from month-end customer flows.
"There is little appetite for speculation and the market is treading cautiously. Typically there is month-end demand for yuan from exporters, but we're not seeing that clearly yet," said a Shanghai-based trader with a foreign bank.
The yuan has fallen 1.0% since the start of 2012.
Offshore, one-year dollar/yuan nondeliverable forward contracts rose to 6.4463/6.4493 from 6.4423/6.4448 late Friday, implying a 1.3% 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 CNY6.3625, higher than CNY6.3580 late Friday.
