2012-01-31

Chinese yuan gets frisky again, slips then pops

The chart only goes through January 30. After slipping on the first business day after Spring Festival, it rallied today on the hopes that Xi Jinping's visit to the U.S. will be accompanied by yuan appreciation.



Yuan in biggest single-day rise in a month, mild appreciation seen
After appreciating sharply in the last few days of 2011, the yuan fell back in early January and has traded mainly in a narrow range of 6.31 - 6.32 per dollar, as the central bank has kept the exchange rate basically stable due to uncertainty about a slowing economy and weakening foreign demand.
"The government has signalled a general trend of stability for the yuan since the start of this year," said a dealer at an Asian bank in Shanghai.
"But this attitude will not affect the yuan's periodical appreciation as China's goodwill gesture to the United States."
More than a few exporters probably wish Chinese leaders would put off their visits to the U.S.

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