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Forex - Chinese yuan hits 14-month lows against dollar

Published 04/22/2014, 08:42 AM
Chinese yuan falls to 14-month low vs. dollar
USD/CNY
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Investing.com - The dollar rose to 14-month highs against the Chinese yuan on Tuesday after China's central bank set the official mid-point fixing rate lower for a third successive session.

USD/CNY was last trading at 6.2376, the strongest level since February 2013, after the People’s Bank of China fixed its midpoint at 6.1610, down 0.03% from Monday.

The central parity rate of the yuan is determined by a weighted average of prices before the market open each day.

The yuan has now fallen more than 3% against the dollar so far this year under the PBOC's guidance, a move aimed at deterring speculators betting on a rising currency.

The depreciation of the yuan during the past three months has attracted increasing criticism from China’s trading partners. Last week, the U.S. Treasury Department said the losses were “unprecedented” and urged China to allow market forces to play a bigger role.

Beijing has said the yuan is nearing fair-market value. Last month, PBOC Vice Governor Yi Gang said the bank’s "decisive role in the exchange rate will weaken."

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