The Chinese yuan on Monday pushed toward its highest value in 19 years against the world's reserve currency as confidence grew regarding inflows of capital spurring appreciation of the monetary unit, Bloomberg reports.
Prices of new homes in 68 of 70 Chinese cities increased during April, statistical data released by the government of China on Sunday noted. The People's Bank of China minimally changed the reference rate.
"Such a strong midpoint really surprised the market given the dollar's strength in global markets," a trader with a Chinese commercial bank in Shanghai told The Economic Times on Monday. "It delivered a clear signal that the central bank would guide the yuan to appreciate further in the near term, although the market is not certain how much more the yuan could rise."
The Asian nation's foreign-exchange reserves, considered to the world's largest, advanced to $131 billion during the first quarter of the year, pushing toward a record value of $3.44 trillion.
Though the U.S. dollar advanced strongly overnight from Sunday to Monday, The Economic Times reports slight changes to the daily reference rate by the central bank was surprising.
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