Sunday, 27 Feb 2011
China yuan gained after sliding recently by the most this month, on speculation the government will permit more appreciation to contain inflation.
Industry data show the yuan advance came as the US Dollar Index traded on ICE futures in New York a gauge of the greenback strength dropped for the first time in three days. Crude oil prices jumped 11% in the past two days in New York on concerns a week long uprising in Libya will disrupt supplies. China imported 54% of the oil it used in 2010.
Mr David Cohen head of Asian forecasting at Action Economics in Singapore said “Beijing sees the usefulness of appreciation as part of its policy to contain inflation, along with higher interest rates and reserve requirement ratios. Appreciation is another way to help contain price pressure from global commodities.”
According to the China Foreign Exchange Trade System the yuan gained 0.09% to 6.5743 per dollar as of 4:30 PM in Shanghai from 6.5803. It fell 0.21 percent retreating from a 17 year high of 6.5654 reached February 21. The central bank set its daily reference rate 0.09% weaker at 6.5828.
Industry data show the yuan advance came as the US Dollar Index traded on ICE futures in New York a gauge of the greenback strength dropped for the first time in three days. Crude oil prices jumped 11% in the past two days in New York on concerns a week long uprising in Libya will disrupt supplies. China imported 54% of the oil it used in 2010.
Mr David Cohen head of Asian forecasting at Action Economics in Singapore said “Beijing sees the usefulness of appreciation as part of its policy to contain inflation, along with higher interest rates and reserve requirement ratios. Appreciation is another way to help contain price pressure from global commodities.”
According to the China Foreign Exchange Trade System the yuan gained 0.09% to 6.5743 per dollar as of 4:30 PM in Shanghai from 6.5803. It fell 0.21 percent retreating from a 17 year high of 6.5654 reached February 21. The central bank set its daily reference rate 0.09% weaker at 6.5828.
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