* APRIL 26, 2010, 4:36 A.M. ET
China Yuan Up Late Due To Lingering Revaluation Expectations
Vs Parity Pvs
USD/CNY Central Parity 6.8263 6.8264
USD/CNY OTC 0730 GMT 6.8270 +0.01% 6.8275
High 6.8279 +0.02%
Low 6.8264 0.00%
SHANGHAI (Dow Jones)--China's yuan rose slightly against the U.S. dollar Monday afternoon because of lingering expectations of a sudden appreciation by the Chinese unit, even though concerns over the country's exchange-rate policy were absent from public statements at an International Monetary Fund meeting Saturday.
On the over-the-counter market, the dollar was at CNY6.8270 around 0730 GMT, down from CNY6.8275 late Friday. It traded between CNY6.8264 and CNY6.8279.
China's central bank set the dollar-yuan central parity rate at 6.8263 Monday, little changed from 6.8264 Friday.
Top financial officials from the world's leading economies met in Washington on Saturday, and while some of them sought to use the gathering to nudge China toward revaluing the yuan, their comments were diplomatically polite, which analysts said would be more fruitful than tough talk.
"It's just a matter of time before China will let the yuan resume it rise against the dollar," said a Shanghai-based trader at a state-run bank.
The dollar-yuan pair has stayed in a narrow range of 6.8200-6.8300 since late 2008, when China's exports were hurt by the deepening global financial crisis. With the country's economy on the mend and inflationary pressure rising, analysts expect Beijing to revalue its currency as soon as in the second quarter of this year.
The Shanghai-based trader said one-year dollar-yuan nondeliverable forwards were hovering around 6.6000 Monday, near this year's lowest intraday level of 6.5850, hit Jan. 11.
At 0738 GMT, the one-year dollar-yuan nondeliverable forwards were at 6.6018/6.6028, down from 6.6087/6.8127 late Friday.
However, not all dealers said they expect a short-term revaluation in the yuan against the dollar.
"Despite rising speculation of an immediate appreciation of the yuan, I think the Chinese currency will keep rangebound before the release of April's economic and trade data," said a Guangzhou-based dealer at a foreign bank.
Commerce Minister Chen Deming said he is cautious about exports this year because of a slow recovery in demand in the U.S. and Europe, Xinhua News Agency reported Saturday.
Chen's comments came after China recorded a trade deficit of more than $7 billion in March, its first monthly deficit in six years.
-Rose Yu contributed to this article, Dow Jones Newswires; 8621 6120-1200;mg rose.yu@dowjones.com
China Yuan Up Late Due To Lingering Revaluation Expectations
Vs Parity Pvs
USD/CNY Central Parity 6.8263 6.8264
USD/CNY OTC 0730 GMT 6.8270 +0.01% 6.8275
High 6.8279 +0.02%
Low 6.8264 0.00%
SHANGHAI (Dow Jones)--China's yuan rose slightly against the U.S. dollar Monday afternoon because of lingering expectations of a sudden appreciation by the Chinese unit, even though concerns over the country's exchange-rate policy were absent from public statements at an International Monetary Fund meeting Saturday.
On the over-the-counter market, the dollar was at CNY6.8270 around 0730 GMT, down from CNY6.8275 late Friday. It traded between CNY6.8264 and CNY6.8279.
China's central bank set the dollar-yuan central parity rate at 6.8263 Monday, little changed from 6.8264 Friday.
Top financial officials from the world's leading economies met in Washington on Saturday, and while some of them sought to use the gathering to nudge China toward revaluing the yuan, their comments were diplomatically polite, which analysts said would be more fruitful than tough talk.
"It's just a matter of time before China will let the yuan resume it rise against the dollar," said a Shanghai-based trader at a state-run bank.
The dollar-yuan pair has stayed in a narrow range of 6.8200-6.8300 since late 2008, when China's exports were hurt by the deepening global financial crisis. With the country's economy on the mend and inflationary pressure rising, analysts expect Beijing to revalue its currency as soon as in the second quarter of this year.
The Shanghai-based trader said one-year dollar-yuan nondeliverable forwards were hovering around 6.6000 Monday, near this year's lowest intraday level of 6.5850, hit Jan. 11.
At 0738 GMT, the one-year dollar-yuan nondeliverable forwards were at 6.6018/6.6028, down from 6.6087/6.8127 late Friday.
However, not all dealers said they expect a short-term revaluation in the yuan against the dollar.
"Despite rising speculation of an immediate appreciation of the yuan, I think the Chinese currency will keep rangebound before the release of April's economic and trade data," said a Guangzhou-based dealer at a foreign bank.
Commerce Minister Chen Deming said he is cautious about exports this year because of a slow recovery in demand in the U.S. and Europe, Xinhua News Agency reported Saturday.
Chen's comments came after China recorded a trade deficit of more than $7 billion in March, its first monthly deficit in six years.
-Rose Yu contributed to this article, Dow Jones Newswires; 8621 6120-1200;mg rose.yu@dowjones.com