WSJ:China Yuan up Late Following Central Bank Guidance, Weaker Dollar
Vs Parity Previous
USD/CNY Central Parity 6.2892 6.2923
USD/CNY OTC 0830 GMT 6.2350 -0.86% 6.2415
High 6.2399 -0.78%
Low 6.2280 -0.97%
SHANGHAI--China's yuan rose against the U.S. dollar Monday after the central bank guided the Chinese currency higher through a lower daily fixing of the dollar-yuan pair.
On the over-the-counter market, the dollar was at CNY6.2350 around 0830 GMT, lower than Friday's close of CNY6.2415. It traded in a range of CNY6.2280-CNY6.2399.
The People's Bank of China set the dollar/yuan central parity rate at 6.2892, lower than Friday's 6.2923. The WSJ Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was around 69.896 late Friday versus 70.186 late Thursday. At 0830 GMT, the index was at 79.60.
"The pair is mainly following the dollar index, which fell overnight," said a Shanghai-based trader with a foreign bank. "Weekend comments out of the Central Economic Work Conference don't suggest China's new leaders are planning to change their views on the currency's value," he added, referring to a meeting in Beijing chaired by incoming premier Li Keqiang.
The yuan has risen 0.95% since the start of 2012.
Offshore, one-year dollar/yuan nondeliverable forward contracts rose slightly to 6.3128/6.3178 from 6.3122/6.3162 late Friday, implying a 1.2% 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 6.2150 versus 6.2203 late Friday.
