The central parity rate of the Chinese currency renminbi, or the yuan, weakened 6 pips to 7.1174 against the U.S. dollar Thursday, according to the China Foreign Exchange Trade System.
In China’s spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.
The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.
U.S. Treasury yields ticked up in response, with traders now pricing in a roughly 60 per cent chance of a Fed cut in March, as compared to a near 70 per cent chance a month ago, according to the CME FedWatch tool.
The benchmark 10-year Treasury yield was last at 4.0904 per cent, not far from Wednesday’s one-month high of 4.1290 per cent, while the two-year yield last stood at 4.3333 per cent.
That kept the greenback pinned near a one-month high against a basket of currencies, with the dollar index last at 103.25.
Data on Wednesday that showed a higher-than-expected increase in U.S. retail sales last month reinforced bets that U.S. rates would likely stay higher for longer.
