China's Yuan hits record high amid US pressureSubmitted by emalvini on Fri, 10/12/2012 - 22:46
China's Yuan hits record high amid US pressure
12 OCTOBER 2012
AFP - China's currency hit a record high against the US dollar on Friday, in what analysts said could be a response to US political pressure over claims the yuan is vastly undervalued.
The upcoming US presidential election and expectations the US government will soon release its semiannual report on exchange rate policies could have prompted Beijing to guide the yuan higher, analysts said.
The yuan touched an intraday high of nearly 6.2640 to $1.0, according to the China Foreign Exchange Trade System, marking the highest level since 1994 when the country launched its modern foreign exchange market.
"We don't rule out the possibility of China taking pre-emptive action ahead of the US election," Liu Dongliang, an analyst at China Merchants Bank, told AFP