The Chinese yuan rose to the highest rate against the U.S. dollar since the end of the yuans peg to dollar in 2005 as the government is believed to start fighting the domestic inflation rate more devotedly.
Yuan has already gained more than 3.4% since the beginning of the year, and, according to the yesterdays report by the Peoples Bank of China, the dollar is expected to depreciate further during the first half of 2008.
Chinas Premier Wen Jiabao pledged this week to take more serious actions in order to tame the rising consumer price inflation that is now reaching its record pace in more than a decade. Many analysts note that the Chinas government clearly states now that it will use currency exchange rate as one of the tools to control the inflation.
Today yuans rate was set at 7.0512 per dollar; thats almost 0.2% stronger than the yesterdays 7.0648 per dollar rate. At a current appreciation speed yuan can reach 7 per dollar rate by the first week of April.
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