Yuan weakens against USD, with limited room for further depreciation
Updated: 2016-10-27 17:15
(Xinhua)
|
||||||||
BEIJING - China's yuan on Thursday returned to losing territory despite a mild gain on the previous trading day, but further depreciation is expected to be limited.
The central parity rate of the Chinese currency, the renminbi or the yuan, weakened 31 basis points to 6.7736 against the US dollar Thursday, according to the China Foreign Exchange Trading System.
Although still slipping, the change narrowed from previous sharp falls. The rate had broken its six-year low for three consecutive days since last Friday, with daily weakening up to 247 basis points.
Room for further depreciation will be limited as China's economic fundamentals remain stable and the dollar's upward momentum is waning, the Financial News said on Thursday.
"The confidence in the yuan stems from economic fundamentals, monetary policies and the stable yuan's domestic value," Xie Yaxuan, an economist with China Merchants Securities, was quoted by the newspaper as saying.
Cross-border capital outflows have been slowing and banks' foreign exchange sales/purchase deficit has been falling since the start of October.
Investors have actually stayed relatively calm in the face of the yuan's weakness due to a more transparent and market-oriented yuan exchange rate formation mechanism and emerging signs of a stabilizing economy.
Yi Gang, deputy governor of the People's Bank of China, the central bank, said earlier this week that there is no basis for persistent depreciation as China's 6.5- to 7-percent growth will help the currency remain at a reasonable level.
"The yuan has stayed stable against a basket of currencies and is less volatile than most reserve currencies and emerging market currencies," he said.
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.
- Trump's Hollywood Walk of Fame star destroyed
- Maduro activates Defense Council to seek solution to crisis
- UN adopts resolution urging end to Cuban embargo, US abstains for first time
- Russian, German FMs discuss Syrian situation
- Workers wield sledgehammers to tear down Calais 'Jungle'
- Panda-themed contest held to mark Belgium-China ties
Chinese baozi shop gains popularity in Harvard Square
Chinese mariner on record-breaking voyage goes missing
2045-square-meter photo mosaic breaks world record
Red leaves reveal beauty of autumn
Tibet mandala: The world in a grain of sand
Top 10 Chinese tycoons in IT industry
Planes ready to take off at Airshow China
Teacher's spirit keeps village school open
Most Viewed
Editor's Picks
![]()
|
![]()
|
![]()
|
![]()
|
![]()
|
![]()
|
Today's Top News
'Zero Hunger Run' held in Rome
Trump outlines anti-terror plan, proposing extreme vetting for immigrants
Phelps puts spotlight on cupping
US launches airstrikes against IS targets in Libya's Sirte
Ministry slams US-Korean THAAD deployment
Two police officers shot at protest in Dallas
Abe's blame game reveals his policies failing to get results
Ending wildlife trafficking must be policy priority in Asia
US Weekly
![]()
|
![]()
|