China's yuan continues to weaken against US dollar

(Xinhua)
Updated: 2009-02-18 14:08

BEIJING -- The Chinese currency yuan weakened against the US dollar for the fourth consecutive trading day on Wednesday morning as safety-seeking investors pushed the dollar high.

The central parity was 6.8363 yuan against the US dollar on Wednesday, compared with 6.8352 on Tuesday, according to the People's Bank of China, China's central bank.

The Federal Reserve Bank of New York reported Tuesday that the Empire State Manufacturing Survey hit a new low of negative 34.7, suggesting that the manufacturing sector remained weak.

The gloomy data increased buying on the US dollar, which is often seen as a safe heaven for investors feeling uncertain about markets.

The US Dow Jones industrial average fell 3.79 percent to 7,552.60 on Tuesday as investors were concerned that the US economic stimulus package would not be enough to revive the economy.

On Wednesday, the yuan edged up to 8.6103 yuan against the euro from 8.7241 yuan on Tuesday.

The yuan's exchange rate is allowed to fluctuate daily within a band of 0.5 percent against the US dollar on either side of the central parity (reference) rate.