China’s yuan rose to a 19-year high after the central bank set a record fixing against the dollar, before paring gains as the government reported an unexpected slowdown in economic growth.
The People’s Bank of China raised its daily reference rate by 0.08 percent to 6.2454 per dollar. The yuan is allowed to trade as much as 1 percent either side of the fixing. GDP increased 7.7 percent in the first quarter, official data showed today, less than 7.9 percent in the preceding three months and the 8 percent median estimate in a Bloomberg survey.
The yuan gained 0.06 percent to 6.1887 per dollar as of 10:10 a.m. in Shanghai, prices from the China Foreign Exchange Trade System show. It touched 6.1860 earlier, the strongest level since the government unified official and market exchange rates at the end of 1993. The currency has rallied in each of the last seven weeks, gaining 0.7 percent in the longest winning streak since November.
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