Vs Parity Pvs
USD/CNY Central Parity 6.3889 6.3968
USD/CNY OTC 0830 GMT 6.3840 -0.08% 6.3940
High 6.3882 -0.01%
Low 6.3832 -0.09%

China's yuan rose against the U.S. dollar late Thursday on higher guidance by the central bank, after falling for five straight trading sessions.

On the over-the-counter market, the dollar was at CNY6.3840 around 0830 GMT, down from Wednesday's close of CNY6.3940. It traded between CNY6.3832 and CNY6.3882.

The yuan has risen 6.9% against the U.S. unit since June 2010, when China ended its currency's peg to the dollar.

The People's Bank of China set the dollar-yuan central parity rate at 6.3889, down from Wednesday's 6.3968, following dollar weakness overseas. The ICE Dollar Index, which tracks the U.S. dollar against a trade-weighted basket of currencies, was at 75.419 late Wednesday in New York, down from 75.952 late Tuesday. At 0830 GMT, the index was at 75.586.

"I expected the central parity to fall but I failed to forecast it would fall that much," said a Shanghai-based trader at a foreign bank, adding that the margin of difference suggests the yuan's uptrend is intact despite its recent losses.

However, a Beijng-based trader at a local bank said Thursday's trading was quiet and volume so thin that players were unwilling to make aggressive bets.

Offshore, one-year dollar-yuan nondeliverable forwards rose to 6.2920/6.2970 from 6.2885/6.2925 late Wednesday, implying a 1.5% rise by the yuan against the U.S. currency over the next year.

In the offshore yuan market in Hong Kong, where the Chinese currency floats freely, the dollar-yuan exchange rate was at 6.3600 late Thursday, up from 6.3590 late Wednesday.

Source:Source: Dow Jones