Vs Parity Previous
USD/CNY Central Parity 6.1697 6.1690
USD/CNY OTC 0830 GMT 6.1246 -0.84% 6.1229
High 6.1260 -0.84%
Low 6.1206 -0.93%
SHANGHAI--The yuan finished lower late Tuesday, after the central bank guided the Chinese currency lower, following U.S. dollar strength overnight.
The dollar-yuan pair closed at 6.1246, up from 6.1229 late Monday.
The People's Bank of China set the pair at 6.1697 in the morning, up from 6.1690 Monday. The higher fixing came on the back of gains in the dollar in New York. The WSJ Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at 73.5711 late Monday in New York, slightly higher than 73.543 late Friday.
"The pair should remain stable as there's not much impacting it apart from the central bank's fixing," said one Shanghai-based trader with a Chinese bank. "For now, the fixings have been to stabilize the currency," he added.
Robert Minikin, senior forex strategist with Standard Chartered Bank, said he expects a moderate depreciation given that domestic economic growth remains moderate and inflationary pressures are subdued in China.
The yuan has appreciated significantly compared with other emerging-market currencies and the Japanese yen, and the macro environment doesn't support further appreciation, he said.
The yuan has risen 1.9% since the start of the year.
Offshore, one-year dollar/yuan nondeliverable forward contracts are up at 6.2560/6.2595, from 6.2450/6.2485 late Monday, implying a 2.0% 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 CNY6.1175 late Tuesday, higher than CNY6.1150 late Monday.
