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ReturnChina:Yuan hits post-revaluation new high
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admin
PublishDate：
2006-07-04 16:25:00
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BEIJING, July 3 -- The yuan set a post-revaluation high against the U.S. dollar for the second straight day Friday amid weakness of the U.S. currency on global markets.
The yuan ended at 7.9943 to the dollar, up from Thursday's close of 7.9955, after the central bank set the yuan's mid-point at a sharply higher 7.9956 versus 8.0001 on the previous day.
The mid-point is viewed as a way for the central bank to signal its intentions to the market, and traders said the central bank appeared content to allow the yuan to reflect the weakness of the U.S. currency on the global front.
On Friday, the dollar hit a three-week low against the euro after the U.S. Federal Reserve's policy meeting gave the clearest signal yet that it may soon take a break from its two-year campaign of interest rate increase.
"That led to heavy selling of the dollar today," said a trader with a domestic bank Friday.
The yuan's previous post-revaluation high was 7.9955, hit Thursday. It has now appreciated by a further 1.45 percent since the government revalued the currency by 2.1 percent and depegged it from the dollar in July 2005.
Traders said it could easily test the psychologically important 7.9900 level in coming days if the dollar failed to rebound overseas.
The yuan ended at 7.9943 to the dollar, up from Thursday's close of 7.9955, after the central bank set the yuan's mid-point at a sharply higher 7.9956 versus 8.0001 on the previous day.
The mid-point is viewed as a way for the central bank to signal its intentions to the market, and traders said the central bank appeared content to allow the yuan to reflect the weakness of the U.S. currency on the global front.
On Friday, the dollar hit a three-week low against the euro after the U.S. Federal Reserve's policy meeting gave the clearest signal yet that it may soon take a break from its two-year campaign of interest rate increase.
"That led to heavy selling of the dollar today," said a trader with a domestic bank Friday.
The yuan's previous post-revaluation high was 7.9955, hit Thursday. It has now appreciated by a further 1.45 percent since the government revalued the currency by 2.1 percent and depegged it from the dollar in July 2005.
Traders said it could easily test the psychologically important 7.9900 level in coming days if the dollar failed to rebound overseas.
