Yuan gains against greenback after leaders' summit

Posted On: March 27, 2012
The value of the monetary unit of China gained against the world's reserve currency on Tuesday after the Asian nation's leader informed the U.S. president that the country will permit an exchange rate more commensurate with more flexibility, according to Bloomberg.

Hu Jintao and Barack Obama met in Seoul, South Korea on Monday and the Chinese leader said the country intends to permit the market to increase its role and upgrade flexibility, the foreign ministry noted. But the leader said appreciation of the renminbi will not aid the U.S. control its jobless rate.

"Hu's remarks and the fixing give signals that the yuan will continue its appreciation path, although that could be a bit bumpy on the uncertain global economic outlook," foreign-exchange analyst Patrick Cheng with Haitong International Securities of Hong Kong told Bloomberg.

Losses to the dollar were also linked with commentary from U.S. Federal reserve chair Ben Bernanke noting on Monday that additional monetary easing is necessary to create jobs.

Reuters reports the U.S. dollar hovered near its lowest value in 30 days early during Tuesday's trading session in the aftermath of the Bernanke commentary at a speaking engagement.

Category: Industry News

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