BEIJING - The central parity rate of the
Chinese currency renminbi, or the yuan, weakened 102 basis points to 6.3530
against the US dollar Thursday, according to the China Foreign Exchange Trade
System.
The central parity rate of yuan, weakened 102 basis points to 6.3530 against the US dollar Thursday
The US dollar increased against most major currencies after
the Federal Reserve at its latest policy meeting showed more confidence in the
need to keep raising interest rates.
The possibility of faster hikes in
US interest rates also lifted short-term US Treasury yields to new high and
boosted the dollar.
The weakening of the yuan was also a normal
correction following its continued strengthening since the beginning of the
year, analysts say.
The first month of 2018 saw the yuan's central
parity rate gain more than 3 percent against the US dollar, over half of the
5.81 percent gained for all of 2017.
Analysts predict that sound
economic fundamentals will support the yuan in the long term and the rate will
see more "two-way movement."
In China's spot foreign exchange market,
the yuan is allowed to rise or fall by 2 percent from the central parity rate
each trading day.
The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before
the opening of the interbank market each business day.
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