Chinese yuan weakens against USD Monday

Source: Xinhua| 2018-02-05 11:58:36|Editor: Lifang
Video PlayerClose

BEIJING, Feb. 5 (Xinhua) -- The central parity rate of the Chinese currency renminbi, or the yuan, weakens against a stronger U.S. dollar Monday, due to impressive data of the U.S. labor market.

The yuan's central parity rate lost 134 basis points to 6.3019 against the U.S. dollar Monday, according to the China Foreign Exchange Trade System.

Analysts attributed yuan's depreciation to strong performance of the U.S. dollar. The dollar index, a gauge that measures the U.S. currency's strength against six other major currencies, inched up over the weekend after its 5-percent decline since December last year.

U.S. total nonfarm payroll employment increased by 200,000 in January, and the unemployment rate stayed unchanged at 4.1 percent, stronger than market expectations, the U.S. Bureau of Labor Statistics said Friday.

The momentum of yuan's appreciation is likely to slow down, according to GF Securities analyst Guo Lei.

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.