Posted On: January 16, 2015
The yuan fell 0.3 percent on Friday to close at 6.2066 per U.S. dollar in Shanghai, marking its highest rate since Dec 18, Bloomberg reported. In offshore trading in Hong Kong, the currency fell 0.39 percent during the session to 6.2231 per U.S. dollar.
The People's Bank of China increased the yuan's reference rate by 0.01 percent on Friday to 6.1188 per U.S. dollar. The news source added that China's foreign exchange reserves declined from $3.88 trillion in September to $3.84 trillion by the end of 2014.
"Market sentiment has definitely worsened in the short term and some investors are probably unwinding their positions to free up liquidity to get dollars," Ho Man Chun, a strategist at Bank of Communications Co. in Hong Kong, told Bloomberg. "This unwinding has nothing to do with China's fundamentals."
The Economic Times reported that China's GDP growth likely decelerated 7.2 percent year-over-year in the fourth quarter of 2014. This figure would fall short of the government's full-year target of 7.5 percent and mark the weakest growth rate in the past 24 years.
The offshore yuan traded at 6.2083 per U.S. dollar, which was 0.17 percent weaker compared to onshore yuan. Offshore one-year non-deliverable forwards fell 2.98 percent to 6.3065 per U.S. dollar.
Category: Industry News
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