Futures Market News
Renminbi pushes to 19-year high
Sep 28, 2012 12:08 PM
Friday saw the Chinese yuan advance to its highest value in 19 years against the U.S. dollar as expectations grew for the nation to aggressively challenge seven consecutive quarters of economic struggles, according to Bloomberg.
The People's Bank of China strengthened the reference rate to its top level since August 22. The move comes as the nation hosting the globe's second-largest economy, trailing only that of the U.S., kicks off one week of observation for the National Day holiday beginning Monday.
"The economy is not doing so well and the government will implement new stimulus although the scale won't be as large as before due to concerns about some bubbles in the property market," foreign-exchange strategist Bruce Yam with Sun Hung Kai Financial told the news source. "The yuan will find it difficult to strengthen beyond 6.25 in the final quarter."
As the third quarter of 2012 closes, the renminbi has advanced 1.1 percent.
Demand for the yuan was climbing higher from corporate sources as banks moved forward in anticipation of National Day observance, according to Reuters.
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