China has set the yuan's mid point versus the US dollar at 6.6295 this morning. That's slightly weaker than Tuesday, which was a record high for the third straight trading day.
China Securities Journal predicts the yuan will rise some five percent in 2011 against the US dollar, as China needs a stronger currency to combat inflation and possible asset bubbles. And the appreciation of the yuan will be particularly strong in the first half of this year.
The editorial also says yuan appreciation will make imports cheaper to reduce the impact of rising commodity prices in the international market, which will provide relief from China's inflationary pressure.
China Securities Journal predicts the yuan will rise some five percent in 2011 against the US dollar, as China needs a stronger currency to combat inflation and possible asset bubbles. And the appreciation of the yuan will be particularly strong in the first half of this year.
The editorial also says yuan appreciation will make imports cheaper to reduce the impact of rising commodity prices in the international market, which will provide relief from China's inflationary pressure.
