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  • Oct 29th, 2005
  • Comments Off on Yuan closes at post-revaluation high versus dollar
China's yuan closed on Friday at a post-revaluation record high for the second straight session, as the US dollar remained weak on global markets.

The yuan - which was revalued by 2.1 percent on July 21 to 8.11 per dollar - closed at 8.0840 versus Thursday's 8.0862 and has now appreciated 0.32 percent since the groundbreaking move.

The Chinese currency has now taken more than three months to rise 0.3 percent, or the daily limit set for the currency to rise or fall as laid out during the July 21 revaluation. Till now, the yuan has not come even close to using up that leeway.

"The dollar's persistent weakness seems to be the major force driving up the yuan," said a trader with a major foreign bank.

Globally, the dollar dipped against the yen on Friday ahead of third-quarter data for the US economy. Domestically, the yuan weakened against the euro to close at 9.8256 compared with 9.7902 on Thursday, and softened to 7.0197 per 100 yen from 7.0002, the central bank said on its Web site.

According to a Financial Times report, US Treasury Secretary John Snow had urged Chinese leaders to revalue the yuan currency again before a visit by US President George W. Bush to Beijing next month.

That appeared to echo long-held sentiment by US manufacturers, who argue that the July move had not been enough. But local dealers saw no direct link with the yuan's movements.

Copyright Reuters, 2005


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