News & Reports News Year 2012 October 2012 Yuan hits 19-year high

Yuan hits 19-year high

THE yuan climbed to its highest in 19 years yesterday when it hit the upper trading limit set by the central bank on talk the government may let the currency appreciate more.

For a second straight day, the yuan firmed to 6.2380 versus the US dollar yesterday, according to China Foreign Exchange Trade System. It was the highest level since the government unified the official and market exchange rates in 1993.

The yuan rose 0.25 percent for the week, and has gained 0.75 percent this month.

"The appreciation of the yuan is caused by a range of factors like capital inflows, low interest rates in the US, and a stable domestic economy," ANZ bank said. "We believe the strengthening will last for some time."