The Chinese yuan continued its triumph this week and was set at a new record high value against the U.S. dollar today at the Shanghai Foreign Currency Trade session.
It will be 10th straight gaining week for the yuan if it closes at the 7.179 yuan per dollar. It is significantly lower rate than yesterdays 7.1904.
Since European and American officials started to press on Chinese government to appreciate yuan faster, the currency began to grow against other major currencies at a really robust pace. It grows not only against dollar, but also against euro, which is in a rather flat trend against the dollar since the beginning of 2008.
Today Dominique Strauss-Kahn, Managing Director of the International Monetary Fund, stated in Beijing that China needs to continue with yuan appreciation, because it will help both with inflation and with the international trade imbalance:
The Chinese government is [also] confronting several macroeconomic policy challenges, including preventing inflation largely the result of food price increases in recent months from becoming entrenched, and rebalancing growth away from heavy reliance on exports and investment toward consumption.
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