The Chinese yuan weakened against the U.S. dollar in the Asian session on Thursday.
In other economic news, data from the National Bureau of Statistics showed that the producer prices in China tumbled an annual 5.9 percent versus forecasts for a decline of 5.6 percent following the 5.4 percent contraction in July. While, the consumer prices rose 2.0 percent on year in August. That exceeded forecasts for an increase of 1.8 percent and was up from 1.6 percent in July.
Against the greenback, the yuan fell to a 9-day low of 6.3846 from an early high of 6.3656. At yesterday’s close, the yuan was trading at 6.3768 against the greenback.
If the yuan extends its downtrend, it is likely to find support around the 6.43 area.
The People Bank of China set today’s central parity rate for yuan at 6.3772 per dollar, compared to Wednesday’s reference rate of 6.3632. 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