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Subject: BEIJING, Oct
Excerpt: English text from the archived bilingual edition · Chinese edition
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BEIJING, Oct. 24 -- The central parity rate of the Chinese yuan weakened to a six-year low against the U.S. dollar on Monday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 132 basis points to 6.7690 against the U.S. dollar Monday, according to the China Foreign Exchange Trade System
It was the weakest level since September 2010 as increased market expectations for an interest rate hike in the United States led to a stronger dollar
In China’s spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day
The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day
The recent yuan depreciation can be attributed to a stronger dollar, said Wang Chunying, spokesman for the State Administration of Foreign Exchange, said at a press conference on Friday
Wang said that China’s exchange rate mechanism has become more market-oriented and transparent which led to higher volatility for the yuan
Analysts believed despite short-term volatility from a stronger dollar, the yuan will maintain overall stability and the chance for a sharp depreciation is slim, backed by stable economic growth, balanced fiscal condition and ample foreign exchange reserves
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