China Yuan Down on Growth Concerns

 
 
 
                                  Vs Parity  Previous 
USD/CNY Central Parity   6.1354               6.1390 
USD/CNY OTC 0830 GMT     6.1389    +0.05%     6.1365 
            High         6.1400    +0.07% 
            Low          6.1320    -0.06% 
 

        SHANGHAI--China's yuan fell against the U.S. dollar Wednesday on concerns over the country's slowing economy, despite the central bank guiding the currency stronger via a daily reference rate.
        The yuan closed at 6.1389 to a dollar, compared with 6.1365 at Tuesday's close. The currency traded between 6.1320 and 6.1400 in the session.
        "There is talk in the market that the central bank may cut reserve requirement ratio for the banks soon, which may suggest the authorities are in deep worries about the economy after the benchmark interest cut on Friday," said a Shanghai-based foreign bank trader.
        The People's Bank of China set the dollar/yuan central parity rate at 6.1354, lower than Tuesday's 6.1390, following dollar weakness overseas after soft consumer-confidence data before a holiday weekend. It is the yuan fixing's strongest level in more than eight months.
        The yuan has fallen 1.4% since the start of 2014, with most of the losses recorded in the first half of the year.
        Offshore, one-year dollar/yuan nondeliverable forward contracts fell to 6.2492/6.2532 from 6.2560/6.2590 late Tuesday, implying a 1.8% 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 CNY6.1479, lower than CNY6.1492 late Tuesday.
        Write to Wynne Wang at wynne.wang@dowjones.com
        (END) Dow Jones Newswires

        November 26, 2014 04:18 ET (09:18 GMT)

#China_Yuan
#Growth
#Down