Yuan Rises Past 8; China May Allow Gains After Treasury Report – Bloomberg

From Bloomberg News (link)

The yuan strengthened beyond 8 to the dollar for the first since July’s revaluation as traders bet China’s will allow faster gains to win U.S. support for its currency .

The Department decided against accusing China of tampering with its exchange rate in a May 10 report because of promises to allow the currency to 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 Corp. in Singapore. “The delay since the report last week is probably a reminder about who’s in charge.”

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