Yuan notches top gain in eight weeks against greenback

Posted On: June 15, 2012
The value of the Chinese monetary unit achieved its top gains in two months on Friday after the People's Bank of China raised the reference rate, according to Bloomberg.

The move is believed to be an effort to improve the world’s perception of the nation's policy for the renminbi in anticipation of the Group of 20 nations convening for meetings next week. On Friday, the PBOC boosted the daily fixing by 0.16 percent, representing the biggest adjustment since early May.

"The fixing is China’s pre-emptive move to ease any pressure on appreciation at the G-20 meetings," president Stella Lee with Success Futures & Foreign Exchange Ltd. in Hong Kong told the news source. "The wider yuan trading band has given more room for China to do so before major summits with trading partners. Investors are also betting global central banks will work together to bolster growth."

The monetary unit's gains on Friday against the world's reserve currency were 0.8 percent, the largest advance since the middle of April.

Scheduled for Monday and Tuesday in Mexico, the Group of 20 summit is projected to strengthen an agreement reached earlier this year in Washington to raise $430 billion that the International Monetary Fund may use to aid euro zone nations, The Wall Street Journal reports.

Category: Industry News

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