WSJ:China Yuan Ends Down On PBOC Guidance, Dollar Demand
Vs Parity Previous
USD/CNY Central Parity 6.2070 6.2035
USD/CNY OTC 0830 GMT 6.1459 -0.98% 6.1428
High 6.1515 -0.89%
Low 6.1455 -0.99%
SHANGHAI--China's yuan fell against the U.S. dollar late Wednesday after the central bank guided it lower via its daily reference rate in response to the dollar's broad gains overseas.
On the over-the-counter market, the dollar was at CNY6.1459 around 0830 GMT, higher than Tuesday's close of CNY6.1428. It traded in a range of CNY6.1455 to CNY6.1515.
The People's Bank of China set the dollar/yuan central parity rate at 6.2070, higher than Tuesday's 6.2035 after the dollar's gains on more signs that the U.S. economic rebound is gaining momentum.
"The market is less one-sided now. There are more people interested in buying the dollar recently on expectations that the Federal Reserve will phase out its bond purchase programs," said a Shanghai-based trader with a foreign bank.
Another Shanghai-based foreign bank trader said more corporates are willing to buy the dollar now also after the foreign exchange regulator issued a ruling early this month to control forex inflows.
The yuan has risen 1.4% against the dollar since the start of 2013.
Offshore, one-year dollar/yuan nondeliverable forward contracts rose to 6.2270/6.2290 from 6.2190/6.2220 late Tuesday, implying a 1.4% 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 CNY6.1440, higher than CNY6.1406 late Tuesday.
