Yuan parity rate falls the most
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E-mail Shanghai Daily, May 8, 2012
The yuan weakened against the US dollar yesterday as its central parity rate fell the most in three weeks due to weaker outlook for China's exports.
The People's Bank of China set the reference rate 0.22 percent weaker at 6.2858 against the greenback from the previous trading day - the biggest drop since March 12.
The yuan tumbled as much as 0.46 percent in intraday trading and closed at 6.3079 against the US dollar, according to the China Foreign Exchange Trade System.
Yi Gang, head of the State Administration of Foreign Exchange, the regulator, said in an interview with Century Weekly published yesterday that China should avoid any excessive adjustment of the yuan's reference rate in order to protect the economy.
Market observers said the yuan also suffered after China's Canton Fair closed on Saturday on a dismal note concerning export orders, with sluggish outlook for exports expected this year.
Liu Jianjun, a spokesman for China's biggest trade fair, said export orders secured at this month's event fell 2.3 percent from a year earlier, which is the first annual decline since 2009. Compared with the biannual fair held in October, the orders have fallen 4.8 percent.
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