Vs Parity Pvs
USD/CNY Central Parity 6.3570 6.3498
USD/CNY OTC 0830 GMT 6.3680 +0.17% 6.3590
High 6.3731 +0.25%
Low 6.3563 -0.01%

China's yuan fell against the U.S. dollar Thursday after the country's central bank guided the currency lower through its daily reference rate.

On the over-the-counter market, the dollar was at CNY6.3680 around 0830 GMT, up from CNY6.3590 late Wednesday. It traded in a range of CNY6.3563 to CNY6.3731.

The People's Bank of China fixed the dollar/yuan central parity rate at 6.3570 Thursday, up from 6.3498 Wednesday. Traders said the dollar is likely to continue to trade in a range of CNY6.3500 to CNY6.3700 in the near term.

"There has been a strong ceiling (for the U.S. dollar) around CNY6.3700 in recent sessions and we saw some selling pressure on the U.S. dollar today in part due to customer flows," which trimmed earlier gains, said a Shanghai-based trader with an Asian bank.

A Shenzhen-based trader with a local bank said: "the central parity was set quite a bit higher today based on the overnight falls of the euro, and that was the major factor affecting the spot market. There wasn't anything remarkable."

The yuan is up 3.5% against the dollar this year and 7.2% since June 2010, when Beijing unpegged its currency from the dollar.

Offshore, the yuan fell against the dollar Thursday in both the nondeliverable forward and spot markets, tracking the onshore market and as investors sought safety in dollars.

One-year dollar-yuan nondeliverable forward contracts rose to 6.3890/6.3940 from 6.3690/6.3730 late Wednesday, implying a 0.4% fall by the yuan over the next year.

In Hong Kong, where the yuan floats freely, the dollar-yuan exchange rate was 6.3905, up from 6.3775 late Wednesday.

Source:chinesestock