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By Dai Qian
THE yuan is expected to move in a narrow range this week as a sharp decline in China's trade surplus may ease the urge for the further appreciation of the Chinese currency.
Analysts still predict that the yuan will track a upward momentum in the medium to long term amid blistering economic growth and state plans to settle the trade imbalances and excess liquidity in the banking system.
The Chinese currency settled at 7.7220 against the US dollar on Friday, a dip from 7.7213 in a week earlier. The central bank set the yuan's central parity rate at 7.7244 against the greenback at the start of Friday's trading, the highest since the peg to the US dollar was cut in July 2005. The yuan has gained more than 6.7 percent since then.
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