China’s yuan rose against the U.S. dollar late Thursday after the central bank guided the yuan stronger via a daily fixing, ending three days of guiding the currency lower, though traders said they continue to expect the yuan to depreciate for the rest of this year.
On the over-the-counter market, the dollar was at CNY6.3841 around 0830 GMT, lower than Wednesday’s close of CNY6.3885. It traded in a range of CNY6.3816 to CNY6.3866.
The People’s Bank of China set the dollar/yuan central parity rate at 6.3381 before trading started Thursday, down from 6.3429 Wednesday but above the 6.3330 level expected by some traders.
The lower dollar/yuan parity was in line with the euro’s overnight rebound and ended the central bank’s three-day campaign to push the currency weaker amid a gloomy economic outlook.
However, the yuan’s fixing fell short of market expectations and lagged the euro’s gains, a signal that the authorities may be unwilling to create the impression that they would allow the currency to undergo another bout of sharp appreciation at a time of slowing economic growth.