Vs Parity Previous USD/CNY Central Parity 6.1109 6.1079 USD/CNY OTC 0830 GMT 6.0550 -0.91% 6.0512 High 6.0560 -0.90% Low 6.0530 -0.95% SHANGHAI--China's yuan fell against the U.S. dollar Thursday as the central bank guided the Chinese currency weaker via a daily reference rate to track the dollar's gains overseas. On the over-the-counter market, the dollar was at CNY6.0550 around 0830 GMT, higher than Wednesday's close of CNY6.0512. It traded in a range of CNY6.0530 to CNY6.0560. The People's Bank of China set the dollar/yuan central parity rate at 6.1109, higher than Wednesday's 6.1079, after the dollar was boosted by the minutes from the December meeting of the U.S. Federal Reserve's Open Market Committee, which showed that an improving U.S. jobs market convinced officials to begin scaling back the monthly bond purchases. "A strong dollar would help the PBOC fight against the yuan's upside pressure," said a Shanghai-based local bank trader. Traders said the PBOC has been trying to take supportive measures that will keep the dollar above the 6.0500 mark since the start of this year via central parity and other intervening tools. Traders and analysts are expecting the Chinese currency to rise by 2.5% to 3.0% this year. The yuan gained 2.9% against the dollar in 2013. Offshore, one-year dollar/yuan nondeliverable forward contracts rose to 6.1180/6.1200 from 6.1155/6.1175 late Wednesday, implying a 1.0% 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 CNY6.0383, higher than CNY6.0364 late Wednesday.

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