Chinese Yuan Softened in Afternoon Trading
Tang Shihua
/SOURCE : yicai

(Yicai Global) Dec. 6 -- The Chinese yuan kept on losing its firmness against the US dollar today as investors wagered safe-haven currencies amid a global stock rout. 

The onshore yuan's spot rate closed at 6.8837, which was 175 points weaker than yesterday's close. The pair traded in the range of 6.86-6.89 for most of the day.

In the past two days, the yuan has lost a total of 436 basis points against the greenback,which was about one third of the gains that it logged during the first two days of this week, caused by optimistic prospects in trade after the US and China agreed on a truce in Argentina on Dec. 1. 

The People's Bank of China set the central parity rate at 6.8599 this morning. In the domestic spot market, the yuan is allowed to rise or fall by 2 percent from the midpoint.

The offshore spot exchange rate was 6.8851 at 4.40pm.

The US bourses were closed yesterday to honor the memory of former president George H. W. Bush. Three major US market indexes lost over 3 percent on Dec. 4. Other global markets extended yesterday's drops to today.

Editor: Emmi Laine

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