Yuan dips again after PBOC lowers rate
Print Edition
THE yuan weakened against the US dollar yesterday after the central bank lowered the daily fixing for the seventh straight trading day.
The yuan closed at 6.5575 yuan per US dollar in Shanghai, the weakest in nearly five years.
The weakening followed the People’s Bank of China’s surprising move yesterday to lower the central parity rate of the yuan from Tuesday’s 6.5157 to 6.5314 per US dollar, the lowest since April 2011.
On Hong Kong’s offshore market, the yuan touched 6.6956 per US dollar, the weakest since offshore trading began in 2010 and a 2.1 percent discount from the onshore price.
HSBC said in a note yesterday that the move to weaken the rate could be to “help bring about a shift in how the public and the market observe yuan exchange rate movements” — the same sentiments the People’s Bank of China expressed when it launched the CFETS (China Foreign Exchange Trade System) RMB Index on December 11.
Since the reform to the central parity rate on August 11, the gap between the reference rate and the previous day’s US dollar/yuan closing rate has been largely in line with the overnight movement of the CFETS RMB Index, HSBC said.
The index tracks the yuan’s movement against a basket of 13 currencies including the US dollar, euro, yen and pound.
The latest reading was 100.94 on December 31, indicating the yuan strengthened 0.94 percent from the end of 2014.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
