BUSINESS China offshore yuan above 6.8

BUSINESS

China offshore yuan above 6.8

CGTN

02:08, July 21, 2018

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(Photo: CGTN)

The central parity rate of the Chinese currency renminbi, or the yuan, weakened 605 basis points to 6.7671 against the US dollar Friday, according to the China Foreign Exchange Trade System.

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 People's Bank of China fixed the yuan midpoint 605 pips or 0.9 percent weaker than the previous fix of 6.7066.

Friday's fixing was the lowest since July 14, 2017, while the move was the biggest one-day weakening in percentage terms since June 27, 2016.

Traders said Friday's fixing largely matched market forecasts. The weaker midpoint guidance rate quickly dragged the offshore yuan lower. As of 0127 GMT, the offshore yuan was trading at 6.8130.

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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