From Bloomberg News (link)
The yuan strengthened beyond 8 to the dollar for the first time since July’s revaluation as traders bet China’s government will allow faster gains to win U.S. support for its currency policy.
The U.S. Treasury Department decided against accusing China of tampering with its exchange rate in a May 10 report because of promises to allow the currency to trade more freely. Foreign Ministry spokesman Liu Jianchao said the next day that the government will “continue to push for reform.”
“The Treasury report was well received by China and the break of the eight level is probably a thank-you for that,” said Sean Callow, a currency strategist at Westpac Banking Corp. in Singapore. “The delay since the report last week is probably a reminder about who’s in charge.”