Yuan Edges Up Against U.S. Dollar
(MENAFN) The central parity rate of the Chinese currency renminbi, or the yuan, edged higher on Thursday, gaining 27 pips to settle at 7.0968 against the U.S. dollar, according to data from the China Foreign Exchange Trade System (CFETS).
This slight appreciation reflects continued policy-guided adjustments in China's tightly managed foreign exchange regime, where the yuan is permitted to fluctuate within a narrow daily trading band. In the onshore spot foreign exchange market, the yuan may rise or fall by up to 2 percent from the central parity rate during each trading session.
The central parity rate itself is calculated based on a weighted average of quotes submitted by designated market makers prior to the opening of the interbank market each business day. These market makers — typically large state-owned banks and financial institutions — play a key role in maintaining stability in the yuan's exchange rate amid both domestic economic shifts and external market pressures.
Thursday's movement suggests cautious optimism from authorities amid global economic uncertainty, ongoing geopolitical tensions, and shifting capital flows. As policymakers continue to balance market forces with exchange rate stability, traders and analysts will be closely monitoring daily rate adjustments for signals on the broader direction of China’s currency policy.
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