China’s central bank set the strongest yuan reference rate on record before Chinese President Xi Jinping and U.S. counterpart Barack Obama meet for talks in California later today.
The People’s Bank of China raised the yuan’s fixing by 0.19 percent to a record 6.1620 per dollar. The increase was the biggest since May 2, official data show. The onshore spot rate was little changed today and this week before data tomorrow that may show export growth halved in May. The currency has appreciated 1.6 percent this year, Asia’s best performance.
“Every time there is a high-profile meeting between the U.S. and China, the yuan has to appreciate,” said Nathan Chow, a Hong Kong-based economist at DBS Group Holdings Ltd. “Near term the yuan may face more pressure for a correction. The market is expecting the trade figures won’t be so good.”
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