China's Yuan Hits 6-Year Low Against USD

China's Yuan Hits 6-Year Low Against USD

The central parity rate of the Chinese yuan continued to weaken on Oct. 17， hitting a sixyear low against the U.S. Dollar.

The central parity rate weakened by 222 basis points to 6.7379 against the dollar，according to the China Foreign Exchange Trade System （CFETS），the lowest level since September 2010.

The weakness in the yuan is a reflection of the dollar's strength. The U.S. Dollar Index， which measures the greenback against six major currencies， hit a sevenmonth high following positive economic data from the country.

In a commentary published on the CFETS website， which is run by the People's Bank of China， the central bank said "there is no basis for the yuan to depreciate in the long term，" citing China's long-term current account surplus， abundant foreign exchange reserves， sound fiscal conditions and a healthy financial system.

It is normal for the yuan to fluctuate against the dollar， and it will continue to do so， the central bank said.

（Sources： Xinhua News Agency， China News Service， China Daily）