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ReturnChina：Chinese Yuan hits new post-revaluation high
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admin
PublishDate：
2007-07-02 15:08:00
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China's yuan hit a post-revaluation high against the dollar in early trade on July 2, breaching the psychologically important 7.6100 mark for the first time, guided by the central bank's record high mid-point.
The yuan was trading at 7.6073 to the US dollar at 10.25am, up from Friday's finish of 7.6132 and its highest since Beijing revalued the Chinese currency and depegged it from the dollar in July 2005.
Before the start of trade, the People's Bank of China fixed the yuan's daily mid-point at 7.6075 to the dollar, the strongest mid-point since the revaluation.
"Although the yuan has frequently been hitting record highs these past few weeks, the pace is still within the central bank's comfort zone," said a dealer at a Chinese commercial bank.
Dealers said pressure for a downward technical correction in the market was heavy, after the yuan's sharp rise since June 11 without a full-fledged correction, but the central bank still holds the key for allowing the yuan to rise or fall.
One-year offshore non-deliverable forwards (NDFs) quoted the yuan at 7.2597/7.2647 at 10.04am GMT, indicating appreciation of 4.72 to 4.79% in one year's time from Monday's mid-point, down from 4.78 to 4.84% on Friday.
Source;Reuters
