2009.01.0904:20:00UTC+00Chinese Yuan Declines To 2-day Low Against Dollar

During early deals on Friday, the Chinese yuan weakened to a 2-day low of 6.8410 against the dollar as China's business confidence indicator dropped in the fourth quarter.

China's business confidence indicator fell 29.2 points to 94.6 in the fourth quarter from the third quarter, a report by the National Bureau of Statistics said today. Moreover, the business climate index slipped 21.6 points to 107 in the fourth quarter from the previous quarter.

If the Chinese currency slips further, it is likely to target the 6.843 level. The dollar-yuan pair closed yesterday's New York session at 6.8357. The People's Bank of China has set today's central parity rate for the dollar-yuan pair at 6.8363.

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