China's yuan rises for seventh day against dollar after Fed rate cut
17/12/2008 16:35
China's currency rose 80 basis points to 6.8353 per US dollar today, as
the yuan maintained its momentum for a seventh consecutive trading day.
That
rate is the central parity rate, which is set daily.
The unexpectedly large
interest rate cut announced by the US Federal Reserve Board overnight drove down
the dollar on international currency markets, analysts said.
The yuan's rise
marked a turnaround from a period of depreciation at the beginning of the month,
when the currency fell by the daily limit against the US dollar for four
straight trading days.
Chou Xiaochuan, governor of the People's Bank of China
(PBOC, the central bank) said in Hong Kong yesterday that the shifting yuan rate
mainly reflected China's overall international balance.
"The central bank
might interfere to some extent, but that influence is not parallel with the
market," Zhou said.
The trade surplus in November hit a record high for this
year at US$40 billion, up 52 percent from last November. The surplus was
US$35.24 billion in October and US$29.3 billion in September, according to the
General Administration of Customs.
Xinhua
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