Another day, another milestone for the yuan appreciating against the dollar. For the first time, the People’s Bank of China has fixed the value of the yuan at less than $6.50. From Reuters:
The People’s Bank of China fixed the yuan’s mid-point versus the dollar
stronger at 6.4990 on Friday from Thursday’s 6.5051, breaching the important
psychological level of 6.50 per dollar for the first time.
Previous day’s mid-point: 6.5051
Previous day’s close: 6.5015
This follows seven straight weeks of the yuan appreciating and its the highest value the yuan has fetched since 1993. From Bloomberg:
China’s yuan strengthened beyond 6.5 per dollar for the first time since 1993, supported by speculation the central bank will allow appreciation to help tame the fastest inflation in more than two years.
The currency was headed for a seventh straight weekly gain, its best winning streak since July 2008, after the Federal Reserve signaled plans to maintain its record monetary stimulus.
The yuan strengthened 0.12 percent to 6.4935 per dollar as of 10:05 a.m. in Shanghai, the strongest level since the country unified official and market exchange rates at the end of 1993, according to the China Foreign Exchange Trade System. It’s set for a 0.85 percent monthly advance, the best performance of 2011.
The People’s Bank of China set the yuan’s reference rate 0.09 percent higher today at 6.4990 per dollar, the strongest level since July 2005. The currency is allowed to trade up to 0.5 percent on either side of the official rate.