BEIJING: The Chinese yuan weakened against the US dollar in the Asian session on Wednesday.
In other economic news, data from the National Bureau of Statistics showed that the consumer prices in China were up 1.6% on year in September. That was shy of forecasts for an increase of 1.8% and down from 2.0% in August. The bureau also said that producer prices fell 5.9% on year,in line with expectations and unchanged from the previous month. Against the greenback, the yuan fell to a 2-day low of 6.3450 from an early high of 6.3326. At yesterday’s close, the yuan was trading at 6.3415 against the greenback.
If the yuan extends its downtrend, it is likely to find support around the 6.38 area.
The People Bank of China set today’s central parity rate for yuan at 6.3408 per dollar, compared to Tuesday’s reference rate of 6.3231. The central bank sets the reference rate every morning and allows the currency to move upto 2% from that level.
