The Chinese yuan weakened against the U.S. dollar in the Asian session on Wednesday, as investors remain cautious ahead of today’s monetary policy decision from the Federal Reserve.
Federal Reserve officials are likely to hold short-term interest rates steady later today, but the focus is going to be on the bank’s policy statement and economic projections, as well as Fed Chair Janet Yellen’s news conference.
Against the greenback, the yuan fell to a 6-day low of 6.5204 from an early high of 6.5128. At yesterday’s close, the yuan was trading at 6.5130 against the greenback.
If the yuan extends its downtrend, it is likely to find support around the 6.55 area.
The People Bank of China set today’s central parity rate for yuan at 6.5172 per dollar, compared to Tuesday’s reference rate of 6.5079. The central bank sets the reference rate every morning and allows the currency to move upto 2 percent from that level.
The material has been provided by InstaForex Company – www.instaforex.com