* FEBRUARY 24, 2010, 4:53 A.M. ET
UPDATE: China Yuan Down Late On Dollar's Gains Against Euro
(Adds closing levels.)
Vs Parity Pvs
USD/CNY Central Parity 6.8271 6.8270
USD/CNY OTC 0930 GMT 6.8270 0.00% 6.8267
High 6.8275 +0.01%
Low 6.8268 0.00%
SHANGHAI (Dow Jones)--China's yuan fell slightly against the U.S. dollar late Wednesday, following the dollar's gains against the euro overnight.
On the over-the-counter market, the dollar was at CNY6.8270 around 0930 GMT, up slightly from Tuesday's close of CNY6.8267. It traded between CNY6.8268 and CNY6.8275.
"We've seen less and less interest in dollar buying in the afternoon as the euro is expected to make a (technical) rebound against the dollar soon after falling for several days," said a Shanghai-based dealer at a foreign bank.
The euro was at $1.3528 at 0930 GMT, up from $1.3496 late Tuesday in New York but down from $1.3597 late Monday.
The dollar-yuan central parity was at 6.8271, nearly flat from 6.8270 Tuesday. The fixing has been set in a tight range between 6.8269 and 6.8281 so far this year.
"The nearly flat central parity level indicates the central bank's stable yuan policy has not changed," said a Shanghai-based trader at another foreign bank. "But the absence of PBOC intervention in the forex markets before and after the Chinese New Year has raised expectations the central bank may allow a slightly wider daily trading range."
Zhao Qizheng, a spokesman for the Chinese People's Political Consultative Conference, said Wednesday that China favors a gradual change in the yuan exchange rate rather than any sudden, big moves, amid increasing speculation about another revaluation of the yuan.
China will consider its own needs more than those of outsiders when looking at the yuan issue, Zhao said during a news briefing ahead of the CPPCC's annual gathering in early March.
"It allayed concerns that China may allow a one-off appreciation of the yuan, and we expect the yuan to be stable for at least this week," said the Shanghai-based dealer.
Offshore, one-year dollar-yuan nondeliverable forwards were at 6.6590/6.6630, down from 6.6680/6.6710 late Tuesday.
UPDATE: China Yuan Down Late On Dollar's Gains Against Euro
(Adds closing levels.)
Vs Parity Pvs
USD/CNY Central Parity 6.8271 6.8270
USD/CNY OTC 0930 GMT 6.8270 0.00% 6.8267
High 6.8275 +0.01%
Low 6.8268 0.00%
SHANGHAI (Dow Jones)--China's yuan fell slightly against the U.S. dollar late Wednesday, following the dollar's gains against the euro overnight.
On the over-the-counter market, the dollar was at CNY6.8270 around 0930 GMT, up slightly from Tuesday's close of CNY6.8267. It traded between CNY6.8268 and CNY6.8275.
"We've seen less and less interest in dollar buying in the afternoon as the euro is expected to make a (technical) rebound against the dollar soon after falling for several days," said a Shanghai-based dealer at a foreign bank.
The euro was at $1.3528 at 0930 GMT, up from $1.3496 late Tuesday in New York but down from $1.3597 late Monday.
The dollar-yuan central parity was at 6.8271, nearly flat from 6.8270 Tuesday. The fixing has been set in a tight range between 6.8269 and 6.8281 so far this year.
"The nearly flat central parity level indicates the central bank's stable yuan policy has not changed," said a Shanghai-based trader at another foreign bank. "But the absence of PBOC intervention in the forex markets before and after the Chinese New Year has raised expectations the central bank may allow a slightly wider daily trading range."
Zhao Qizheng, a spokesman for the Chinese People's Political Consultative Conference, said Wednesday that China favors a gradual change in the yuan exchange rate rather than any sudden, big moves, amid increasing speculation about another revaluation of the yuan.
China will consider its own needs more than those of outsiders when looking at the yuan issue, Zhao said during a news briefing ahead of the CPPCC's annual gathering in early March.
"It allayed concerns that China may allow a one-off appreciation of the yuan, and we expect the yuan to be stable for at least this week," said the Shanghai-based dealer.
Offshore, one-year dollar-yuan nondeliverable forwards were at 6.6590/6.6630, down from 6.6680/6.6710 late Tuesday.