The value of the monetary unit of China minimally strengthened on Thursday against the U.S. dollar as speculation mounted about the central bank of the Asian nation preparing to intervene to spur the globe's second-largest economy, according to The Wall Street Journal.
The People's Bank of China on Thursday established a central parity rate that was higher than the Wednesday evening rate. With one-plus week remaining in the year, the yuan has achieved gains of roughly 1 percent against the world's reserve currency in 2012.
"Some Chinese banks bought large amount of dollar yesterday, very likely on behalf of the central bank," a Shanghai-based foreign bank trader told The Wall Street Journal on Thursday. "So traders don't dare to continue to sell the dollar today, in case such dollar bids surface again."
Bloomberg reports the PBOC noted in an editorial in state-owned media that it will handle worldwide monetary easing by central banks by increasing the yuan's exchange rate.
An editorial in Xinhua News Agency indicated the central bank of China is set to aid businesses' borrowing needs, which will assist the growth of its monetary base.
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