SHANGHAI--China's yuan fell to a four-month low against the U.S. dollar Monday on the back of weak Chinese economic data and after the dollar reached multiyear highs against the euro and yen.
Vs Parity Previous
USD/CNY Central Parity 6.1282 6.1373
USD/CNY OTC 0830 GMT 6.1727 +0.73% 6.1502
High 6.1727 +0.73%
Low 6.1478 +0.32%
The yuan was at 6.1727 to a dollar at the close--its weakest level since Aug. 5, when it touched 6.1782--compared with 6.1502 at Friday's close. The currency traded between 6.1478 and 6.1727 in the session.
China's exports rose 4.7% in November from a year earlier, down from an 11.6% rise in October and below forecast 8% growth. Imports fell 6.7% from a year earlier, after a 4.6% rise in October, missing the forecast 3.9% increase.
"The yuan has been falling since November and the latest data supported more weakness in the Chinese currency," said a Shanghai-based foreign bank trader, adding the yuan's downside limit will be decided by the central bank but that traders didn't see any intervention Monday.
The People's Bank of China set the dollar/yuan central parity rate at 6.1282, lower than Friday's 6.1373, despite the dollar's strength after data showed much stronger-than-expected U.S. job gains in November.
The yuan has fallen 1.9% since the start of 2014, with most of the losses in the first half of the year.
Offshore, one-year dollar/yuan nondeliverable forward contracts rose to 6.3005/6.3045 from 6.2760/6.2810 late Friday, implying a 2% 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 CNY6.1772, higher than CNY6.1534 late Friday.
Write to Wynne Wang at wynne.wang@dowjones.com
(END) Dow Jones Newswires
December 08, 2014 04:23 ET (09:23 GMT)
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