WSJ:Dollar Index Recovers Modestly Against The Loonie
Vs Parity Previous
USD/CNY Central Parity 6.3106 6.3112
USD/CNY OTC 0830 GMT 6.2640 -0.74% 6.2707
High 6.2756 -0.56%
Low 6.2618 -0.77%
SHANGHAI--China's yuan rose against the U.S. dollar late Tuesday to a fresh record high since the country depegged the Chinese currency from the U.S. unit in 2005, after the central bank guided the yuan higher and as the yuan tracked the euro's strength in the afternoon.
On the over-the-counter market, the dollar was at CNY6.2640 around 0830 GMT, the lowest closing level under the current system, and also lower than Monday's close of CNY6.2707. It traded in a range of CNY6.2618 to CNY6.2756.
The People's Bank of China set the dollar/yuan central parity rate at 6.3106, lower than Monday's 6.3112, though the level wasn't as low as expected by traders. The PBOC had set the central parity rate sharply lower in each of the three previous sessions.
"The yuan will likely consolidate between 6.2600 and 6.2900 in the near term" as the yuan's fixing isn't likely to be substantially higher than in the previous sessions, said a Shanghai-based trader with a local bank.
The yuan also tracked the euro's strength in the afternoon on better-than-expected U.S. retail sales data. U.S. retail sales--an important component of consumer spending--increased 1.1% in September, posting a gain for the third straight month. Economists polled by Dow Jones Newswires had expected a 0.7% increase.
At 0830 GMT, the euro was at $1.3001, from $1.2950 late Monday in New York.
The yuan has risen 0.5% against the dollar since the start of 2012.
Offshore, one-year dollar/yuan nondeliverable forward contracts rose to 6.3566/6.3606 from 6.3520/6.3570 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 CNY6.2660, slightly lower than CNY6.2665 late Monday.
