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Forex Market: China Yuan Weakened Slightly
China's yuan eased two notches to 8.2774 against the US dollar yesterday as importers stepped up buying of the hard currency, dealers said.

The yuan remained stifled in a tight range of 8.2772 to 8.2775. Turnover, a thin US$380 million on Tuesday, was not immediately available.

"There was some dollar buying from importers late in today's session which drove the yuan slightly lower," said a Chinese bank dealer, adding that most deals were seen around 8.2772 and 8.2773.

Dealers said the yuan was likely to hover between 8.2770 and 8.2775 in the short run, near the strong end of a government-set trading box of 8.2760 to 8.2800, buoyed by ample dollar supply after a persistent trade surplus over the past few years.

Central bank governor Zhou Xiaochuan has said the government would keep the yuan's exchange rate stable, although officials from the United States, Japan and South Korea have said the currency is being kept artificially low.

Yesterday, the yuan weakened against the Japanese currency to 6.9021 per 100 yen from 6.8933, and softened to 8.8997 against the euro from 8.8181.

(China Daily April 10, 2003)

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