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China's yuan eased one notch against the US dollar to 8.2770 yesterday due to a pick-up in hard currency demand from importers, dealers said.
The yuan moved in a tight range of 8.2769 to 8.2771. Turnover fell slightly to US$350 million from Monday's US$380 million.
Dealers said the market shrugged off fears that a more widespread domestic outbreak of the deadly SARS virus than previously reported might hit economic growth by subduing spending and tourism.
"Up to now, we have yet to see any impact from SARS on this market," said a dealer at a state-owned bank, adding that dollar buying by importers pushed the yuan down slightly.
The yuan is not fully convertible on the capital account and reacts mainly to US dollar demand and supply arising from trade flows.
China said its economy grew 9.9 percent year on year in the first quarter, the fastest pace in six years.
Exports soared nearly 34 percent to more than US$86 billion, although high oil prices and heavier imports of raw materials, machinery and cars led to a slight trade deficit of about US$1 billion over the period.
(China Daily April 23, 2003)
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