Yuan hits new high against U.S. dollar

http://www.chinaccm.com 2007-7-3 13:24

      
China's currency, the yuan, hit a new high on Tuesday against the U.S.
 
dollar, according to the Chinese Foreign Exchange Trading System. 

The central parity rate of the yuan, also known as Renminbi (RMB), 
stood at 7.5951 yuan to one U.S. dollar on Tuesday, gaining 124 basis 
points from Monday's reference rate of 7.6075 to the dollar. 

It is the first time that yuan's value exceed 7.60 mark. On July 2, 
it challenged the 7.61 mark to reach 7.6075. The Chinese currency has
 climbed 2,136 basis points from 7.8087 yuan to one U.S. dollar 
posted on the last trading day of 2006. 

The accumulative appreciation since July 21, 2005, when China d
iscontinued yuan's peg to the greenback, has exceeded 7.5 percent. 

The People's Bank of China, or the central bank, allows a trading 
band of 0.5 percent on either side of the midpoint on the interbank 
market. 

Chinese experts believe that as a fast growing economy with low 
inflation, China will inevitably see its currency rise in value. A 
gradual appreciation brings about fewer risks and upheavals than 
does an abrupt one. 

On Tuesday, the yuan lost 470 basis points from the previous trading
 day to reach a central parity rate of 10.3445 yuan against one euro.
 And it moved down 325 basis points to reach 6.2044 yuan against 100
 Japanese yen. 

Source: Xinhua