Renminbi Strengthens to 6.3997 v.s. U.S. Dollar on Monday22 Aug 2011
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Renminbi Strengthens to 6.3997 v.s. U.S. Dollar on Monday22 Aug 2011
by Rooster Mon Aug 22, 2011 9:24 am
Renminbi Strengthens to 6.3997 v.s. U.S. Dollar on Monday22 Aug 2011
August 22, The Chinese currency, the renminbi, strengthened 35 basis points to 6.3997 per U.S. dollar on Monday, according to the China Foreign Exchange Trading system.
The currency's central parity was stronger compared to Friday's 6.4032 fix as the greenback lost against major currencies amid fears of another recession in the world's biggest economy.
In China's foreign exchange spot market, the renminbi is allowed to rise or fall by 0.5% from the central parity rate each trading day.
On May 21, 2007, the central bank widened the daily fluctuation band to 0.5% from 0.3% on either side of the central parity rate.
The central parity rate of the renminbi against the U.S. dollar is based on a weighted average of prices before the opening of the market each business day.
“Safe” Investments
Meanwhile, U.S. vice president Joe Biden has assured the safety of the country’s investments in U.S. treasuries.
"We appreciate and welcome your concluding that the United States is such a safe haven because we appreciate your investment in U.S. Treasuries," Biden told Chinese Premier Wen Jiabao on Sunday in Beijing, where he was on the second day of a 9-day trip to Asia. "I want to make clear that you have nothing to worry about in terms of their viability."
Biden said the U.S. will "take care" of U.S. Treasuries "not merely because China owns 8% of them, but because the Americans own 85%".
China is now the biggest single foreign creditor of the U.S. with $1.17 trillion in holdings.
The statement marked the second such pledge during his visit to China. The U.S. politician will wrap up his trip to China on Monday and then head to Mongolia and Japan.
The Chinese currency has strengthened in value by 6.27% against the dollar since the central bank let the renminbi float against the dollar within a wider range after scrapping a 2-year peg on June 19 last year, and 3.37% so far this year. Experts have predicted that the currency could appreciate by as much as 7% in 2011.
edited by Cyrus LAO
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August 22, The Chinese currency, the renminbi, strengthened 35 basis points to 6.3997 per U.S. dollar on Monday, according to the China Foreign Exchange Trading system.
The currency's central parity was stronger compared to Friday's 6.4032 fix as the greenback lost against major currencies amid fears of another recession in the world's biggest economy.
In China's foreign exchange spot market, the renminbi is allowed to rise or fall by 0.5% from the central parity rate each trading day.
On May 21, 2007, the central bank widened the daily fluctuation band to 0.5% from 0.3% on either side of the central parity rate.
The central parity rate of the renminbi against the U.S. dollar is based on a weighted average of prices before the opening of the market each business day.
“Safe” Investments
Meanwhile, U.S. vice president Joe Biden has assured the safety of the country’s investments in U.S. treasuries.
"We appreciate and welcome your concluding that the United States is such a safe haven because we appreciate your investment in U.S. Treasuries," Biden told Chinese Premier Wen Jiabao on Sunday in Beijing, where he was on the second day of a 9-day trip to Asia. "I want to make clear that you have nothing to worry about in terms of their viability."
Biden said the U.S. will "take care" of U.S. Treasuries "not merely because China owns 8% of them, but because the Americans own 85%".
China is now the biggest single foreign creditor of the U.S. with $1.17 trillion in holdings.
The statement marked the second such pledge during his visit to China. The U.S. politician will wrap up his trip to China on Monday and then head to Mongolia and Japan.
The Chinese currency has strengthened in value by 6.27% against the dollar since the central bank let the renminbi float against the dollar within a wider range after scrapping a 2-year peg on June 19 last year, and 3.37% so far this year. Experts have predicted that the currency could appreciate by as much as 7% in 2011.
edited by Cyrus LAO
[You must be registered and logged in to see this link.]
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