The yuan is likely to rise this week as the US dollar continues
to weaken on worries of a possible US slump.
The yuan ended at 7.2485 on the China Foreign Exchange Trade
system in Shanghai from 7.2620 a weak earlier.
Last week, Citigroup and Merrill Lynch reported huge losses in
the fourth quarter of 2007 due to the subprime crisis.
Citigroup lost US$9.8 billion while Merrill Lynch suffered a
US$9.83 billion loss in the fourth quarter.
The turmoil spread over into the US stock market, leading to
concerns the US economy may fall into a recession.
A faster appreciation of the yuan is likely amid China's tight
monetary policy to fight inflation.
(Shanghai Daily January 21, 2008)
