China’s yuan surged to the strongest level since 1993 on speculation the government will bow to growing political pressure to allow faster appreciation.
The currency climbed for a 10th straight day even as the People’s Bank of China set a weaker reference rate for the first time since Sept. 8. U.S. lawmakers will vote on Sept. 29 on whether American companies should petition for higher duties on imports from China.
“Given the increasing foreign pressure and the bright outlook for the Chinese economy, the yuan’s appreciation trend won’t change,” said Lu Ting, a Hong Kong-based economist at Bank of America-Merrill Lynch.
The yuan rose 0.1 percent to 6.7009 per dollar as of 10:04 a.m. in Shanghai, from 6.7079 on Sept. 21, according to the China Foreign Exchange Trading System. It earlier touched 6.6950, the strongest level since the central bank unified official and market exchange rates at the end of 1993.
The monetary authority set the yuan’s reference rate at 6.7098 per dollar, compared with 6.6997 on Sept. 21. Local financial markets opened for trading today after a three-day holiday last week.
The yuan has advanced 1.9 percent against the dollar since the central bank ended a two-year dollar peg on June 19. Premier Wen Jiabao said on Sept. 22 that a 20 percent rise in the value of the yuan would lead to severe job losses and trigger social instability, putting the nation on course for a clash with U.S. lawmakers who are demanding a stronger currency.
--Judy Chen. Editors: Ven Ram, Sandy Hendry
To contact Bloomberg News staff for this story: Judy Chen in Shanghai at xchen45@bloomberg.net.
To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.
source: http://www.businessweek.com/news/2010-09-26/yuan-climbs-to-strongest-level-since-1993-before-u-s-vote.html
The currency climbed for a 10th straight day even as the People’s Bank of China set a weaker reference rate for the first time since Sept. 8. U.S. lawmakers will vote on Sept. 29 on whether American companies should petition for higher duties on imports from China.
“Given the increasing foreign pressure and the bright outlook for the Chinese economy, the yuan’s appreciation trend won’t change,” said Lu Ting, a Hong Kong-based economist at Bank of America-Merrill Lynch.
The yuan rose 0.1 percent to 6.7009 per dollar as of 10:04 a.m. in Shanghai, from 6.7079 on Sept. 21, according to the China Foreign Exchange Trading System. It earlier touched 6.6950, the strongest level since the central bank unified official and market exchange rates at the end of 1993.
The monetary authority set the yuan’s reference rate at 6.7098 per dollar, compared with 6.6997 on Sept. 21. Local financial markets opened for trading today after a three-day holiday last week.
The yuan has advanced 1.9 percent against the dollar since the central bank ended a two-year dollar peg on June 19. Premier Wen Jiabao said on Sept. 22 that a 20 percent rise in the value of the yuan would lead to severe job losses and trigger social instability, putting the nation on course for a clash with U.S. lawmakers who are demanding a stronger currency.
--Judy Chen. Editors: Ven Ram, Sandy Hendry
To contact Bloomberg News staff for this story: Judy Chen in Shanghai at xchen45@bloomberg.net.
To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.
source: http://www.businessweek.com/news/2010-09-26/yuan-climbs-to-strongest-level-since-1993-before-u-s-vote.html
0 komentar:
Post a Comment