(Yicai Global) July 17 -- The yuan’s parity rate against the dollar hit its weakest value in almost a year today.
The People’s Bank of China set the rate at 6.6821, 63 pips less than yesterday and marking the lowest value since Aug. 9. The bank sets the benchmark on the morning of each business day, allowing spot rates to deviate 2 percent above or below the figure.
The offshore yuan, which is not controlled by PBOC, was 6.6988 as of 5.31 p.m. Beijing time, after closing at 6.6838 yesterday.
Analysts believe the yuan’s recent fluctuations are a result of a strong dollar and more “rational” forecasts for the greenback, and do not expect the yuan to witness any more sharp declines.
Editor: James Boynton