Posted On: November 28, 2012
The monetary unit of China slid against the U.S. dollar on Wednesday after the central bank of the Asian nation established a lower reference rate, according to
The Wall Street Journal.
The People's Bank of China established the central parity rate to the dollar/yuan at 6.2902, an increase from Tuesday's reference rate.
"In spite of the higher central parity rate, customers are still selling the dollar heavily due in part to a continued recovery in exports in recent months," a trader at a Shanghai-based state bank told the news source on Wednesday, noting that during the next few weeks, "the yuan's rise will also likely be capped by demand for safe-haven assets amid concerns about the U.S. fiscal cliff and multinational companies' move to send dollars back to U.S. headquarters around the year-end."
China saw exports increase 12 percent in October as compared to the same period one year ago. Those gains trump the 9.9 percent climb from September and the 2.7 percent rise from August.
the Obama administration said the Asian nation is not a currency manipulator but the country's monetary unit is "significantly undervalued."
Category: Industry News
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