China’s yuan strengthened the most in four weeks as a report showed exports rose more than economists estimated and after the central bank raised the currency’s reference rate by the most since October.
The People’s Bank of China bolstered the fixing by 0.17 percent today to 6.2793 per dollar, the biggest increase since Oct. 15. The yen rebounded today after European Central Bank President Marios Draghi said recent euro gains may slow growth. China’s overseas sales climbed 25 percent in January from a year earlier, official data showed today. That compares with a 14.1 percent advance in December and a median estimate in a Bloomberg News survey of economists for a 17.5 percent gain.
“China no longer has to weaken the fixing to compensate for the impact from a weakening yen,” said Dariusz Kowalczyk, a Hong Kong-based strategist at Credit Agricole CIB. China is set “for a stronger currency this year as the trade surplus is higher and inflation is rising,” he said.
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