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Saturday, September 17, 2011

Yuan Gets Stronger as China Expected to Allow Gains


Chinese yuanThe Chinese yuan gained today on the speculation China will allow the currency to appreciate to combat inflation that accelerates with fast pace.
China’s central bank set the exchange rate at 6.3987 per dollar, increasing the fixing for the second straight day. Market analysts explain that China needs help of a strong currency to deal with the fast growth of the consumer prices. Today’s report that showed growth of manufacturing confirmed the trend for increasing inflation remains in place.

USD/CNY went down from 6.4015 to 6.3980 today as of 11:07 GMT, gaining 0.07 percent. That was the fist gain in five sessions.
If you have any questions, comments or opinions regarding the Chinese Yuan, feel free to post them using the commentary form below.

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