China's yuan trades at 6.49 per dollar, on Fed ambiguity

10:46, April 29, 2011      

Email | Print | Subscribe | Comments | Forum 

China's currency, the yuan or RMB, strengthened beyond 6.5 yuan per U.S. dollar, as the latter is weakened on the global monetary market because of the ballooning American national debts.

The U.S. Federal Reserve's latest monetary policy conference's ambiguity on whether to launch "quantitative easing III" in July by printing more dollars to buy U.S. Treasury bonds, has send the greenback on a continuous run in value against other major currencies.

Correspondingly, the People's Bank of China, the central bank, decided to set the medium dollar-yuan rate at 6.4990 per dollar on Friday, the highest level since 1993. The yuan also gained in value against the Hong Kong dollar and the Japanese yen.

China's currency has been on a gaining streak this week as market analysts gauged the Federal Reserve policy meeting that signaled the U.S. central bank probably would maintain its unprecedented practice of gushing huge liquidity to "stimulate" an anemic economic recovery.

The Fed's decision to hold the benchmark interests rates at near-zero for an unspecified time has put the dollar in a weak position.

Chinese market analysts believe that the yuan will continue to appreciate against the dollar, probably rising more than 5 percent within 12 months. It has gained more than 2 percent in 2011.

China's central bankers, including Mr Zhou Xiaochuan, governor of the central bank, have said that the country could allow faster currency appreciation to help contain imported inflation. China's consumer price index, a major gauge of inflation, jumped to 5.4 percent in April, hitting a 32-month high.

The central bank has twice raised the interest rates this year to fight inflation. It is expected to continue the monetary tightening policy till the year end.

By People's Daily Online
 
 
     
 
BRICS Leaders Meeting 2011
 
Japan in aftershocks
 
     
 
 
 
  Weekly review  
 
April 20   Beijing-Shanghai high-speed rail to remove luxury seats
 
April 18   China undergoing shift into nation of consumers
April 18   Zhejiang checks food, raids illegal bun makers
April 19   SASS: Chinese students mentally healthier than Asian peers
April 23   The week in pictures
April 19   Build legal bulwark against moral decline
April 21   'China model' 30 years on: from home to abroad
April 21   Piano student's bloody crime heart-wrenching in China
April 18   China places firmer lid on home prices
April 19   China puts brake on economic bullet train
 
     
 
 

(Editor:梁军)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • BRICS Leaders' Meeting 2011
  • Focus On China
Major headlines
Editor's Pick
  • Chaumet exhibits delicate timepieces to mark 200th anniversary
  • Serbia's Tipsarevic beats Russia's Zverev of at Serbia Open
  • Cam Newton goes 1st in NFL draft to Panthers
  • Wax statue of actress Fan Bingbing unveiled in Shanghai
  • Swatch FIVB Beach Volleyball World Tour held in Sanya
  • Worldwide spectators camp along route to witness royal wedding
Most Popular
Hot Forum Dicussion