Yuan-USD parity rate ends 1yr lows

Source: Xinhua | 2018-08-09

The central parity rate of the Chinese yuan against the US dollar was 6.8431 on Tuesday, advancing by 82 basis points and ended the lows recorded for more than a year.

This reversed the currency’s downward trend on Monday and last Friday, which saw a respective loss of 191 and 380 basis points.

At around 7:45pm on Tuesday, China’s offshore yuan strengthened against the greenback above 6.83, rising over 500 basis points from the day’s low of the day.

A little earlier, the onshore yuan also rose to 6.83 against the dollar, jumping nearly 300 basis points within the day. At 11:30pm, the onshore yuan closed at 6.8332, up 198 basis points from the end of Monday’s night session. The surge came after reports the People’s Bank of China called for major banks to fend off further currency volatility.

The central bank is confident of maintaining the yuan’s stability. The PBOC said it will seek to keep the flexible exchange rate system and two-way floating regime “unchanged.”