Yuan predicted for further gain
By Dai Qian (Shanghai Daily)Updated: 2007-04-02 10:22 The yuan is expected to hover within a narrow range this week following previous gains that enabled the currency to break new ground as the government fulfills its commitment to making the yuan more flexible.
| |||
The Chinese currency closed 7.7302 against the US dollar on Friday, slightly down from the 7.7280 a week earlier.
The yuan has gained 6.6 percent since July 2005, when China ended the peg of 8.28 yuan to the greenback and weighed it against a basket of currencies.
The Chinese economy advanced 10.7 percent and is expected to expand another 10 percent this year, according to a report by the Asian Development Bank on Tuesday.
Since trade surplus and heated investment remain a challenge for the economy, more policy tightening - such as another interest rate hike - will likely be seen in the coming quarters to curb the bulging credit, analysts said.
(For more biz stories, please visit Industry Updates)