The Chinese yuan lost ground against the U.S. dollar on Thursday, after the People’s Bank of China fixed the mid-point for the yuan to dollar exchange rate at the weakest since May 2011.
The Chinese central bank set the central parity rate for the yuan 6.4936 at per dollar, compared to Wednesday’s reference rate of 6.4895.The PBOC sets the central parity rate every morning and allows the currency to move upto 2 percent from that level.
The yuan depreciated to 6.5046 against the greenback, a level not seen since May 2011. The yuan is likely to find downside target around the 6.6 region. At Wednesday’s close, the pair was valued at 6.4895.
The material has been provided by InstaForex Company – www.instaforex.com