The yuan appreciated 0.12 percent to 6.1633 per dollar
at the close of trading in Shanghai after surging close to its highest
level in five months of 6.1624. The closing level was up 0.08 percent
past Wednesday’s reference rate of 6.1681, the first time the exchange
rate surpassed the daily fix since the trading spread was expanded by 2
percent in March.
“Letting the market forces have a bigger role in the currency is a good sign that the central bank is comfortable with a modest gain in the yuan,” Irene Cheung, a strategist at Australia*& New Zealand Banking Group Ltd in Singapore, told Bloomberg. “External balances for China, including the*trade surplus*and capital flows, are constructive for the yuan.”
The Shanghai Composite Index of equities surged 7.5 percent in July, the most since December 2012, while the yuan has advanced 1.7 percent from a low of 6.2676 per dollar touched in April 30.
“Letting the market forces have a bigger role in the currency is a good sign that the central bank is comfortable with a modest gain in the yuan,” Irene Cheung, a strategist at Australia*& New Zealand Banking Group Ltd in Singapore, told Bloomberg. “External balances for China, including the*trade surplus*and capital flows, are constructive for the yuan.”
The Shanghai Composite Index of equities surged 7.5 percent in July, the most since December 2012, while the yuan has advanced 1.7 percent from a low of 6.2676 per dollar touched in April 30.
