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Yuan Weakened Due to Increasing Dollar Purchase
China's yuan weakened a tick Thursday due to commercial bank bids for dollars on behalf of importers, dealers said.

The yuan closed at 8.2768 after finishing at 8.2767 on Monday, Tuesday and Wednesday.

Thursday's trading range was 8.2765 to 8.2769, still narrow but wider than the three notch range the yuan had been trapped in for the previous two sessions.

The Chinese Government keeps a tight rein on the currency as part of its macroeconomic policy.

Turnover was a brisk $590 million after Wednesday's healthy $490 million.

"There were slightly more dollar purchases for importers," said a dealer at a State-owned bank in Beijing.

The yuan's value is driven primarily by external trade flows since it is fully convertible only on the current account.

(china.org.cn October 18, 2002)

Yuan Closed Flat Against US Dollar Due to China's Strong Export
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