The Chinese yuan achieved its record-high value against the world's reserve currency on Wednesday as speculation mounted that the Asian nation's capital markets will avail themselves to offshore investors, Bloomberg reports.
The People's Bank of China solidified the daily fixing of the renminbi by 0.4 percent, spurring the advance of the monetary unit 1.8 percent against the U.S. dollar thus far this year.
"Expectations of yuan depreciation have declined after the government signaled it'll work toward realizing its growth target," chief economist Eliza Liu with CCB International Holdings Ltd. in Hong Kong told the media outlet on Wednesday. "However, the yuan is unlikely to gain significantly going forward on gloomy export prospects and unfavorable capital flows."
July shipments from China were forecast by Bloomberg economists to have climbed 2 percent as compared to advances during July 2012.
The value of the Chinese renminbi at closing on Wednesday was at its highest rate against the U.S. dollar since the advent of the foreign exchange market in 1994, according to Reuters.
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