(Yicai Global) Sept. 26 -- The central parity rate of the Chinese yuan weakened to its lowest point in a month, dragged down by the fall of the onshore Chinese yuan yesterday.
The rate softened 131 basis points to 6.8571 against the US dollar today, a nadir since Aug. 24. The US Dollar Index, measuring the value of the greenback relative to six other main currencies, dipped 0.06 percent to close at 94.1330 yesterday in New York.
Past performance shows the US dollar and Chinese yuan tend to trend in opposite directions. A falling US dollar index thus means a strengthening or stabilizing yuan.
Onshore Chinese yuan closed at 6.8670 against the dollar yesterday, down 120 points from the Sept. 21 close.
Yesterday's fall of onshore yuan may be a 'delayed adjustment' and result from tourists' peak use of foreign currencies, analysts said, adding that these short-term factors will not change the pattern of stable operation of the yuan exchange rate.
The short-term US dollar trend is unclear while the expectation that Chinese yuan will stabilize is firming, but the bumpy road may hold until Oct. 1, market insiders said.
The yuan may depreciate in future, but will rebound in the short term, said Tan Yaling, head of the China Forex Investment Research Institute.
Editor: Ben Armour