Yuan falls

28 Jul, 2011

The yuan closed lower against the dollar on Wednesday after hitting an all-time high for a sixth straight trading day, as the People's Bank of China took advantage of a weak dollar to engineer further appreciation in the Chinese currency. Spot yuan closed at 6.4433, weaker than Tuesday's close of 6.4414. It has now appreciated 5.94 percent since it was depegged from the dollar in June 2010 and 2.27 percent so far this year.
It hit an all-time high of 6.4375 in intraday trading, toppling the historical high of 6.4382 set on Tuesday. Offshore, benchmark one-year dollar/yuan non-deliverable forwards (NDFs) were bid at 6.3690 in late trade, down marginally from 6.3700 at Tuesday's close.

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