Related News
Yuan-dollar rate hits all time high on stronger mid-point
By Louise Ho |
December 27, 2011, Tuesday
|
Print Edition
Print Edition
THE yuan hit a record high against the US dollar in intraday trading yesterday on expectations that the central bank intends to maintain gradual yuan appreciation and news that Japan is gearing up to buy Chinese bonds for the first time.
The central bank set the mid-point fixing at 6.3167 per dollar yesterday, according to the China Foreign Exchange Trade System.
This was stronger than Friday's fixing at 6.3209 and close to the record high fixing of 6.3165 on November 4.
The yuan strengthened to 6.3175 per dollar in intraday trading - its strongest level since China introduced exchange rate reforms in 1993.
"The fixing shows the central bank's determination to push forward with appreciation," Liu Dongliang, a senior analyst in Shenzhen at China Merchants Bank, told Bloomberg News. "The market has fully taken the signals sent through the fixings," he said.
Yuan depreciation might stimulate capital outflows, Yi Xianrong, a researcher at the Institute of Finance and Banking under the Chinese Academy of Social Sciences, wrote in a commentary yesterday.
"The central bank's confirmation that Japan is going to buy Chinese bonds has fueled market demand and confidence in the yuan," said foreign exchange market watcher Xiao Lei.
Stable outlook
The central bank said in a statement on Sunday that China and Japan were going to increase bilateral financial cooperation, and Japan's investment application for Chinese bonds was ongoing.
The last time the yuan peaked was on December 16, when it reached 6.3294 per dollar on the central bank's injection of dollars via state-owned banks.
The central bank has also been using strong mid-points to indicate government intentions to keep the yuan stable.
The yuan is expected to remain stable near 6.30 against the dollar for the remainder of the year, traders said.
The yuan has appreciated 4.27 percent so far this year, and most of the gain was achieved in the first 10 months.
Liu said the Chinese currency was expected to appreciate in the next six months but the room for any big increase was limited, as pressure for the yuan's rise was nearing an end.
The central bank set the mid-point fixing at 6.3167 per dollar yesterday, according to the China Foreign Exchange Trade System.
This was stronger than Friday's fixing at 6.3209 and close to the record high fixing of 6.3165 on November 4.
The yuan strengthened to 6.3175 per dollar in intraday trading - its strongest level since China introduced exchange rate reforms in 1993.
"The fixing shows the central bank's determination to push forward with appreciation," Liu Dongliang, a senior analyst in Shenzhen at China Merchants Bank, told Bloomberg News. "The market has fully taken the signals sent through the fixings," he said.
Yuan depreciation might stimulate capital outflows, Yi Xianrong, a researcher at the Institute of Finance and Banking under the Chinese Academy of Social Sciences, wrote in a commentary yesterday.
"The central bank's confirmation that Japan is going to buy Chinese bonds has fueled market demand and confidence in the yuan," said foreign exchange market watcher Xiao Lei.
Stable outlook
The central bank said in a statement on Sunday that China and Japan were going to increase bilateral financial cooperation, and Japan's investment application for Chinese bonds was ongoing.
The last time the yuan peaked was on December 16, when it reached 6.3294 per dollar on the central bank's injection of dollars via state-owned banks.
The central bank has also been using strong mid-points to indicate government intentions to keep the yuan stable.
The yuan is expected to remain stable near 6.30 against the dollar for the remainder of the year, traders said.
The yuan has appreciated 4.27 percent so far this year, and most of the gain was achieved in the first 10 months.
Liu said the Chinese currency was expected to appreciate in the next six months but the room for any big increase was limited, as pressure for the yuan's rise was nearing an end.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
