WSJ:China Yuan Up Late on Strengthened Euro Despite PBOC Fixing
Vs Parity Previous
USD/CNY Central Parity 6.3411 6.3392
USD/CNY OTC 0830 GMT 6.3530 +0.19% 6.3568
High 6.3594 +0.29%
Low 6.3522 +0.18%
SHANGHAI--China's yuan climbed against the U.S. dollar late Tuesday, tracking the euro's gains in the afternoon, despite the central bank's weaker guidance.
On the over-the-counter market, the dollar was at CNY6.3530 around 0830 GMT, higher than Monday's close of CNY6.3568. It traded in a range of CNY6.3522 to CNY6.3594.
The U.S. unit rose nearly throughout the Asian session after the People's Bank of China set the daily dollar/yuan central parity rate at 6.3411, above Monday's 6.3392, following the greenback's mild strength overnight. But as the euro rose on hopes that the European Central Bank would soon buy the debt of troubled European Union countries such as Spain and consider steps to prevent government bond yields from soaring, large Chinese banks stepped in to sell the dollar during the last 30 minutes of Tuesday's session.
Going forward, "my guess is that the dollar-yuan central parity won't fall too much [Wednesday] as it seems the PBOC's recent strategy is to keep the yuan steady," said a Shanghai-based trader with a local bank.
The Chinese currency has fallen 0.9% against the dollar since the start of 2012.
Offshore, one-year dollar/yuan nondeliverable forward contracts rose to 6.4470/6.4550 from 6.4463/6.4493 late Monday, implying a 1.5% 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 CNY6.3620, lower than CNY6.3625 late Monday.
