The yuan has raided Friday under the psychological threshold of 6.50 to the dollar, a first reinforcing expectations of a continuation of politics by Beijing of appreciation of its currency to counter inflation.
Although this bar is not significant 6.50 yuan on the technical side, the Chinese media and economists should see in it a new indication on the latitude of increase that has the motto. It has appreciated by 27.5% since the currency reforms undertaken by China in 2005.
Currency traders took advantage of the momentum created by the central bank, by setting the daily central parity of the yuan, pushing the currency to 6.4898 per dollar on the spot market.The currency has appreciated by over 5% against the greenback since its separation from the dollar in June 2010 and 1.5% this year.
"This indicates that this assessment will continue. In fact, we see no sign of an acceleration of that assessment, but they'll probably keep the current pace," Judge Liu Dongliang, an analyst with China Merchants Bank.
Beijing authorities have understood more and more clearly that they wanted to use exchange rate policy as a weapon in their fight against inflation, which hit in March a high of 32 months at 5.4% annually in reducing the impact of imported raw materials.