The yuan hit an all-time high on Monday during the day’s trading, closing up against the dollar, and traders said it may be on the way to a more than 4% growth rate for 2011.
Spot yuan trading hit an all-time high during Monday trading of 6.3160 against the dollar, before dropping back at market close to 6.3198. Reuters reported that the People’s Bank of China set the dollar/yuan midpoint at 6.3167 on Monday. That is higher than the Friday’s at 6.3209, and comes close to the record of 6.3165 on Nov. 4. It is expected to hold firm or to increase a bit further during this last week of 2011.
The currency is also expected to continue to increase in 2012, because although exports have slowed, China is still recording major trade surpluses. The U.S. pressure on Beijing to allow the currency to rise to help balance trade is expected to have little effect.