China Yuan Down Late On Growth Concerns; Hits Lowest In Over 5 Months - Wall Street Journal

                                       Vs Parity  Previous   USD/CNY Central Parity   6.3297               6.3262   USD/CNY OTC 0830 GMT     6.3577    +0.44%     6.3480               High         6.3591    +0.46%               Low          6.3522    +0.36%      

SHANGHAI (Dow Jones)--China's yuan fell against the U.S. dollar to its lowest level in more than five months late Wednesday, weighed by concerns over the evolving crisis in Europe and slowing domestic growth.

On the over-the-counter market, the dollar was at CNY6.3577 around 0830 GMT, higher than Tuesday's close of CNY6.3480. It traded in a range of CNY6.3522 and CNY6.3591, the highest level since Dec. 15.

The People's Bank of China set the dollar/yuan central parity rate at 6.3297, higher than Tuesday's 6.3262, following dollar strength against the major currencies, especially the euro. The euro was at $1.2503 late Tuesday in New York, lower than $1.2542 late Monday. At 0830 GMT, the euro was at $1.2450.

"It seems that the PBOC is still only partly reflecting the dollar's strength in global markets, allowing only slow depreciation of the yuan against the dollar, perhaps due to recent U.S. calls for more yuan appreciation... However, the central bank may become bolder in weakening the yuan against the dollar if the domestic economy slows further," said Credit Agricole in a research note Wednesday.

A Shanghai-based trader with a foreign bank said he saw strong dollar demand in the onshore market as investors worried about global and domestic economic growth sought safety in less-risky assets.

The official Xinhua News Agency said late Tuesday that Chinese authorities won't resort to an aggressive stimulus plan as they did at the end of 2008 to ensure steady economic growth, dashing hopes that such stimulus measures will support domestic growth.

The yuan has fallen 1.0% since the start of 2012.

Offshore, one-year dollar/yuan nondeliverable forward contracts rose to 6.4150/6.4170 from 6.4030/6.4080 late Tuesday, implying a 0.9% fall by the yuan over the next year.

In the offshore yuan market in Hong Kong, where the Chinese currency floats freely, the dollar was at CNY6.3495 late Wednesday, higher than CNY6.3440 late Tuesday.

-Wynne Wang contributed to this article, Dow Jones Newswires; (86-21) 6120-1200; wynne.wang@dowjones.com