Chinese Yuan's Central Parity Rate Against US Dollar Levels Out Ahead of G20 Summit
Yicai Global
/SOURCE : Yicai
Chinese Yuan's Central Parity Rate Against US Dollar Levels Out Ahead of G20 Summit

(Yicai Global) Aug. 30 -- The central parity rate of the Chinese yuan stood at 6.6812 to the US dollar today, 0.0044 points higher than yesterday. This is lower than the expected rate of 6.6945, signifying that China's central bank, the People's Bank of China, plans to maintain a stable exchange rate during the G20 economic summit, Mr. Zhou Hao, senior economist at Commerzbank AG, said.

The central parity rate of the yuan-dollar exchange rate is calculated using the previous day's closing exchange rate added to the variation in the exchange rate against a basket of currencies.

The rate of offshore yuan against dollar slumped to below the 6.7 threshold soon after the opening of morning trading and then swiftly rebounded to be close to 6.687.

Some traders perceive a rate of around 6.68 to be a good time to exchange dollars for yuan, slowing the decline of the Chinese yuan. The purchase of foreign currencies saw a rapid increase in the afternoon but big banks are still keeping an eye on a rate of around 6.68.

The dollar index leveled off yesterday as investors wait for the latest US non-farm payroll data to be released on Friday.

Last week Federal Reserve Chair Janet Yellen said that the case for rising interest rates in the next few months is strengthening, but did not give a specific timeframe.

 

 

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