RMB Exchange Rate Got To The Lowest Level In Six Years

The central parity rate of the Chinese yuan continued to weaken Tuesday after hitting a six-year low against the US dollar Monday.This is a good news for saling ferric chloride.

Analysts say this indicates the yuan's exchange rate has entered a new float range and the currency will stay basically stable against other currencies.

The central parity rate of the renminbi, or the yuan, weakened 90 basis points to 6.7098 against the US dollar Tuesday, according to the China Foreign Exchange Trade System.

A senior foreign exchange trade executive from a large domestic commercial bank said this indicated that the yuan's exchange rate would fluctuate between 6.80 to 6.70 in the future.

Following the yuan's drastic depreciation Monday, the central bank did not trigger the filtration mechanism as in the past, which is a new signal of more market-oriented policies, said Xie Yaxuan, an analyst with China Merchant Securities.

Sun Lijian, a senior finance researcher with Fudan University, said the yuan is under increasing pressure of depreciation since the United States posted better-than-expected manufacturing PMI index, consumer confidence index and employment data.

Taking into account the November US presidential election, he expected a rise in the US interest rate in the middle of December.

However,the experts see no long-term depreciation of the yuan.