USD/CNY May Fall; 6.2940 Fixing Eyed

The USD/CNY central parity rate may be set lower Wednesday as China's central bank continues to pursue a relatively stable exchange rate and as investor risk appetite improves following Tuesday's Greek bailout deal. Wednesday's central parity is likely to be set around 6.2940, down from 6.2960 Tuesday, says a Shanghai-based trader at an Asian bank. "The pair's recent trend has been moderate," he says, adding that the dollar may see a continued near-term drop following the agreement to give Greece a second bailout package. The pair was at 6.2964 late Tuesday. Offshore, one-year USD/CNY NDFs are up at 6.2795/6.2845 from 6.2760/6.2810 late Tuesday.