Foreign Exchange News
- Yuan gains likely to speed up
Date: 28-May-2007 Sources: (Xinhua Online)
The appreciation of Chinese yuan may speed up this week amid bullish sentiment over latest tightening measures to curb the excess liquidity and cool the sizzling economy.
The currency closed at 7.6523 against the United States dollar on Friday, up from the 7.6683 a week earlier. The central parity, an indicator of market views on the yuan's movements, broke five records last week after the central bank raised interest rates and widened the daily trading band of the currency.
The yuan has appreciated 7.6 percent since China abandoned the decade-old fixed exchange rate of 8.28 to the US dollar on July 21, 2005.
The central bank has raised interest rate four times and increased reserve requirements eight times since the middle of last year. Analysts expected the currency to settle below 7.5 by the end of this year.
Sponsor Results:
