China’s yuan climbed for a fourth day in the longest run of gains since January as reports showed factory output picked up in June.
The currency touched a 12-week high as the official Purchasing Managers’ Index for manufacturing released today showed a reading of 51 for last month, the highest since December. Another gauge compiled by HSBC Holdings Plc and Markit Economics rose to a seven-month high of 50.7. Regulators increased banks’ capacity to lend yesterday by changing the way loan-to-deposit ratios are devised.
“The economy has turned up and recent data has improved,” said Irene Cheung, a Singapore-based strategist at Australia & New Zealand Banking Group Ltd. “The latest move by the banking regulator to relax the computation of the loan-to-deposit ratio yesterday would also be a move to support growth.”
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