Yuan Rises to Highest Since End of Peg as China Curbs Inflation
From Bloomberg:
The yuan climbed to the highest since a dollar link was abolished in 2005 on speculation that China will quicken gains to damp inflation. Bonds fell.
The central bank has allowed the yuan to gain 5.3 percent against the dollar this year, approaching the 7 percent advance in 2007. Premier Wen Jiabao pledged last week that the government will step up controls on price increases after inflation reached an 11-year high of 8.7 percent in February.
“The policy thrust for yuan appreciation will remain unchanged as an offset to inflation,” said Yen Ping Ho, a currency strategist at JPMorgan Chase & Co. in Singapore. “Curbing inflation is still a crucial government objective.”
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Origin: Judy Chen and Belinda Cao, Bloomberg
