China Yuan Up a Tad in Bargain Hunting

 
 
 
                                  Vs Parity  Previous 
USD/CNY Central Parity   6.1256               6.1248 
USD/CNY OTC 0830 GMT     6.2130    +1.43%     6.2200 
            High         6.2215    +1.57% 
            Low          6.2062    +1.32% 
 

        SHANGHAI--China's yuan rose slightly against the U.S. dollar Tuesday as bargain hunting for the Chinese currency increased following its recent weakness, even though the central bank guided it weaker via a daily reference rate.
        The yuan closed at 6.2130 to a dollar, compared with 6.2200 at Monday's close. It traded between 6.2062 and 6.2215 in the session.
        The People's Bank of China set the dollar/yuan central parity rate at 6.1256, above Monday's 6.1248, following the dollar's strength overseas.
        However, traders were still worried about the yuan's near-term performance. "The dollar-yuan central parity may be fixed steadily around 6.11-6.12. The yuan may depreciate to around 6.24 at the lowest according to the 2% trading band," said China Guangfa Bank in a report.
        The yuan fell 2.5% against the dollar last year, thanks to a slowing domestic economy and a stronger dollar. It was the first time the Chinese currency recorded an annual loss since 2010.
        Offshore, one-year dollar/yuan nondeliverable forward contracts fell to 6.3190 from 6.3325 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 CNY6.2163, lower than CNY6.2251 late Monday.
        Write to Wynne Wang at wynne.wang@dowjones.com
        (END) Dow Jones Newswires

        January 06, 2015 04:05 ET (09:05 GMT)

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