Home > Uncategorized > Yuan Strengthens Beyond 6.28 A Dollar – Business Insider

Yuan Strengthens Beyond 6.28 A Dollar – Business Insider

October 12, 2012 Leave a comment Go to comments

Oct. 11 (Bloomberg) — China’s yuan rose beyond 6.28 per dollar for the first time in 19 years on speculation policy makers will act to revive economic growth and as the central bank raised the currency’s fixing by the most in seven weeks.

The yuan’s reference rate was set 0.09 percent stronger, the most since Aug. 22, to 6.3391 against the U.S. currency. China asked local authorities to spend more on public transport to ease congestion and reduce pollution, according to a statement posted on the central government’s website yesterday after a State Council meeting presided by Premier Wen Jiabao. The Chinese Communist Party will hold a congress starting Nov. 8, while a once-a-decade leadership transition is also planned.

“Investors hold strong expectations for China to roll out more stimulus measures as political issues have been settled,” said Kenix Lai, a Hong Kong-based foreign-exchange analyst at Bank of East Asia Ltd. “It’s quite surprising to see the yuan rising through key levels as export growth has yet to regain strong momentum.”

The yuan gained 0.07 percent to 6.2790 per dollar as of 10:23 a.m. in Shanghai, according to the China Foreign Exchange Trade System. It touched 6.2781 earlier, the strongest level since China unified official and market exchange rates at the end of 1993. The spot rate is at a 0.96 percent premium to the daily fixing, close to the 1 percent permitted trading range.

via Yuan Strengthens Beyond 6.28 A Dollar – Business Insider.

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