The Chinese yuan pushed to its 20-year peak on Monday against the world's reserve currency after the U.S. Labor Department's release of weaker-than-anticipated jobs data late last week raises questions about the next steps of monetary policy, according to Bloomberg.
The People's Bank of China boosted the daily reference rate by 0.1 percent. China's trade surplus in December rose to $25.6 billion, according to official data released in the end of last week.
"The broader market environment of capital retreating from emerging markets would reduce the pressure of appreciation of the yuan this year," economist Kevin Lau with Standard Chartered told The South China Morning Post on Monday. "Meanwhile, as foreign investors hold a consensus view that China's economic growth would maintain at a low 7 per cent, that would somehow help curb the hot money inflows."
The renminbi pushed ahead 0.14 percent against the greenback, touching its highest value since 1998 against the dollar.
The yuan notched gains of 2.9 percent against the U.S. dollar in 2013, according to The South China Morning Post.
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