The yuan is expected to see some correction this week after a
fast-tracked appreciation.
The People's Bank of China set the central parity rate of the
yuan at 7.3890 against the greenback on Friday, the highest point
of six straight trading days.
The central parity rate has been set below 7.4000 in the last
two sessions, compared with below 7.3900 in the previous two
sessions, indicating that the yuan needs a brake for a short
adjustment before gaining steam for a further rise, traders
said.
Traders expected the yuan to rebound before the third US-China
Strategic Economic Dialogue that begins on December 13.
Expectations of a weaker US dollar and a heavy play of yuan in
China's economy are likely to further increase the yuan's
value.
(Shanghai Daily December 3, 2007)
