China Yuan Up as Recovers EU Some Ground

 
 
 
                                  Vs Parity  Previous 
USD/CNY Central Parity   6.1364               6.1384 
USD/CNY OTC 0830 GMT     6.2435    +1.75%     6.2542 
            High         6.2535    +1.91% 
            Low          6.2425    +1.73% 
 

        SHANGHAI--China's yuan rose against the U.S. dollar Tuesday as the central bank guided the currency stronger via a daily reference rate after the euro clawed back some ground overseas.
        The yuan closed at 6.2435 to a dollar Tuesday, compared with 6.2542 at Monday's close. The yuan traded between 6.2425 and 6.2535 in the session, after it hitting an over seven-month low on Monday.
        The People's Bank of China set the dollar/yuan central parity rate at 6.1364, lower than Monday's 6.1384, following dollar weakness overseas as some investors closed out bets following the euro's sharp decline against the dollar since the European Central Bank's announcement of a bigger-than-expected stimulus last week.
        "I think the euro's fall will be a slow and long process, so it's not smart to put too many bets on the yuan's decline due to the European currency's woes now," said a Shanghai-based foreign bank trader.
        The yuan has fallen 0.6% against the dollar since the start of 2015. The currency fell 2.5% against the dollar last year, thanks to slowing domestic growth and strength in the U.S. economy, which sent its dollar higher. It was the first time the Chinese currency recorded an annual loss since 2010.
        Offshore, one-year dollar/yuan nondeliverable forward contracts fell to 6.3490 from 6.3705 late Monday, implying a 1.7% 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 CNY6.2455, lower than CNY6.2566 late Monday.
        Write to Wynne Wang at wynne.wang@dowjones.com
        (END) Dow Jones Newswires

        January 27, 2015 04:44 ET (09:44 GMT)

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