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16:59, 05-Feb-2018
Chinese yuan weakens against USD Monday
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The central parity rate of the Chinese currency renminbi, or the yuan, weakens against a stronger US dollar Monday, due to impressive data of the US labor market.
The yuan's central parity rate lost 134 basis points to 6.3019 against the US dollar Monday, according to the China Foreign Exchange Trade System.
Analysts attributed yuan's depreciation to strong performance of the US dollar. The dollar index, a gauge that measures the US currency's strength against six other major currencies, inched up over the weekend after its five-percent decline since December last year.
US 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 US 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 two percent from the central parity rate each trading day.
The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.
Source(s): Xinhua News Agency