BEIJING (Reuters) - China’s central bank on Wednesday rejected a media report that the yuan had weakened beyond the 7.0000 per dollar level in the onshore market on Dec. 28, calling the report “irresponsible”.
The yuan traded between 6.9500 and 6.9666 per dollar on Wednesday, the PBOC said on its microblog .
“But some irresponsible media reported that the onshore rate of the yuan broke the psychological threshold of 7.0000,” the central bank said.
Persistent downward pressure on the yuan has contributed to large capital outflows this year and the central bank has spent some of its foreign exchange reserves to support the currency’s value.
The yuan edged weaker against the dollar on Wednesday in weak market sentiment as the year winds down.
The spot yuan is on track to finish the year with a loss of nearly 7 percent against the dollar, and traders expect depreciation pressure to extend into 2017.
Markets will be watching household dollar purchases closely at the beginning of 2017, when individuals will get a fresh $50,000 foreign-exchange conversion quota.
In January this year, a sharp fall in the yuan sparked worries about China’s slowing economy, roiling global markets.
Reporting by Ryan Woo; Editing by Alison Williams/Ruth Pitchford