Chinese buying U.S. dollars; yuan dips

China Yuan Down Late On Central Bank Guidance
China's yuan was weaker against the U.S. dollar late Monday after the central bank, in a surprise move, guided the yuan lower via its daily reference rate.

On the over-the-counter market, the dollar was at CNY6.3019 around 0830 GMT, up from Friday's close of CNY6.2978. It traded between CNY6.2980 and CNY6.3029.

The People's Bank of China set the dollar-yuan central parity rate at 6.2985, up from Friday's 6.2965, despite the dollar's weakness against the euro overseas.
A Chinese friend told me she is dollar-cost averaging the purchase of U.S. dollars, buying 3000 renminbi worth every month. That works out to roughly US$500. Gold is the latest hot investment with stocks down for two-plus years and now real estate losing its luster, but it will be very interesting if U.S. dollars become popular since it could lead to major changes in the currency markets, such as yuan depreciation. For now, it is but a single anecdote.

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