Chinese Currency Rises Above Key Level |
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April 29, 2011
The Chinese currency hit a milestone Friday by rising beyond a level closely watched by analysts — the strongest since Beijing began allowing the currency, the renminbi, to rise in 2005 and a sign that the authorities might be using the appreciation as a weapon against inflation.
The Chinese currency hit a milestone Friday by rising beyond a level closely watched by analysts - the strongest since Beijing began allowing the currency, the renminbi, to rise in 2005 and a sign that the authorities might be using the appreciation as a weapon against inflation.
The dollar fell below 6.50 renminbi to about 6.491. That marks a 5 percent gain for the renminbi since last June, when it traded around 6.827.
The rise in the Chinese currency engineered by Beijing has gone in fits and starts. In 2005, the authorities allowed the renminbi to strengthen modestly after longstanding accusations by governments around the world that China was keeping its currency artificially weak to increase its exports. But in 2008, Beijing took a long pause, once again holding the renminbi steady to steer its giant economy through the global financial crisis. In June, the rise resumed.
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