* JANUARY 26, 2010, 4:45 A.M. ET
UPDATE: China Yuan Flat Late On Lack Of Flows, Stable Fixing
By Joy C. Shaw
Of DOW JONES NEWSWIRES
SHANGHAI (Dow Jones)--A stable central parity and relatively light demand from exporters and importers left China's yuan nearly unchanged against the U.S. dollar late Tuesday.
On the over-the-counter market, the dollar was at CNY6.8268 around 0930 GMT, down slightly from CNY6.8269 at Monday's close. It traded between CNY6.8264 and CNY6.8275.
The central bank set the dollar-yuan central parity rate at 6.8269, slightly off 6.8270 on Monday, and the lowest since Dec. 2, when it was set at 6.8268.
Traders said the relatively low central parity rate initially prompted some demand for the yuan from local and foreign banks in the morning, but the dollar had strong support around 6.8264 due to a lack of significant customer flows.
"There aren't any clear signs yet indicating the yuan will appreciate steadily against the dollar in the near term," despite growing speculation of a yuan revaluation this year due to stronger economic data, said a Shenzhen-based trader at a local bank.
"I think the central bank will most likely keep the yuan stable for the time being to make sure the economic recovery is indeed on track."
A Shanghai-based trader at a foreign bank said though China's tighter bank lending this month drove the Japanese yen to rise against other major currencies early Tuesday in Asia trade, the yuan isn't likely to move significantly against the dollar in the near term.
"We don't think the yuan will move up in the first half of this year," he said.
Offshore, one-year dollar-yuan nondeliverable forwards were at 6.6470-6.6500, up from 6.6320/6.6340 late Monday afternoon.
-By Joy C. Shaw, Dow Jones Newswires; (86-21) 6120-1200; joy.shaw@dowjones.com
UPDATE: China Yuan Flat Late On Lack Of Flows, Stable Fixing
By Joy C. Shaw
Of DOW JONES NEWSWIRES
SHANGHAI (Dow Jones)--A stable central parity and relatively light demand from exporters and importers left China's yuan nearly unchanged against the U.S. dollar late Tuesday.
On the over-the-counter market, the dollar was at CNY6.8268 around 0930 GMT, down slightly from CNY6.8269 at Monday's close. It traded between CNY6.8264 and CNY6.8275.
The central bank set the dollar-yuan central parity rate at 6.8269, slightly off 6.8270 on Monday, and the lowest since Dec. 2, when it was set at 6.8268.
Traders said the relatively low central parity rate initially prompted some demand for the yuan from local and foreign banks in the morning, but the dollar had strong support around 6.8264 due to a lack of significant customer flows.
"There aren't any clear signs yet indicating the yuan will appreciate steadily against the dollar in the near term," despite growing speculation of a yuan revaluation this year due to stronger economic data, said a Shenzhen-based trader at a local bank.
"I think the central bank will most likely keep the yuan stable for the time being to make sure the economic recovery is indeed on track."
A Shanghai-based trader at a foreign bank said though China's tighter bank lending this month drove the Japanese yen to rise against other major currencies early Tuesday in Asia trade, the yuan isn't likely to move significantly against the dollar in the near term.
"We don't think the yuan will move up in the first half of this year," he said.
Offshore, one-year dollar-yuan nondeliverable forwards were at 6.6470-6.6500, up from 6.6320/6.6340 late Monday afternoon.
-By Joy C. Shaw, Dow Jones Newswires; (86-21) 6120-1200; joy.shaw@dowjones.com