The yuan advanced, halting a two-day drop, as China is said to be speeding up work on 7 trillion yuan ($1.1 trillion) of infrastructure projects as it tries to bolster an economy estimated to expand the least since 1990.
Premier Li Keqiang’s government approved 300 projects as part of a wider 400-venture, 10 trillion yuan plan to run from late 2014 through 2016, said people familiar with the matter who asked not to be identified as the decision isn’t public. The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major counterparts, fell 0.2 percent, after rising 1.1 percent in the past two trading days. The gauge reached the highest level yesterday since its inception in December 2004.
The yuan advanced 0.11 percent to 6.2130 a dollar in Shanghai, China Foreign Exchange Trade System prices show. The currency weakened 0.26 percent yesterday and 0.03 percent on Dec. 31 before markets shut till this week.
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