The yuan rose to a 19-year high after the People’s Bank of China set the currency’s reference rate at the strongest level since Jan. 15 amid U.S. Treasury Secretary Jacob L. Lew’s visit to Beijing for talks.
The central bank boosted the yuan’s fixing by 0.07 percent to 6.2716 per dollar today. Lew, who has pledged to press China to adopt a market-determined exchange rate, will have separate meetings with Premier Li Keqiang and PBOC Governor Zhou Xiaochuan. The greenback rose against the euro today as investors sought havens after the Cypriot parliament voted down a bank-deposit levy needed to secure a bailout.
“It may be because the U.S. Treasury Secretary is in Beijing,” said Andy Ji, a foreign-exchange strategist in Singapore at Commonwealth Bank of Australia. (CBA) “If you look at the U.S. dollar move, naturally the fixing should be for a stronger dollar.”
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