Yuan Hits High Against U.S. Dollar as China Bumps Exchange Rate Peg
Meanwhile, the U.S. stepped up pressure on China to let the yuan rise further, with Treasury Secretary Timothy Geithner saying in an interview with The Wall Street Journal that while China signaled in June it was going to let the exchange rate better reflect market forces, "they've done very, very little, they've let it move very, very little in the interim."
The People's Bank set the mid-point at 6.7509 on Monday, Reuters reported, up from Friday's 6.7625, guiding spot yuan to trade at 6.7616 at midday on Monday after touching a post-revaluation high of 6.7568, up from Friday's close of 6.7692. The yuan, also called the renminbi, is now up 0.96% since China eliminated the two-year peg to the dollar.
However, such supports may already be in place: China's industrial production rose 13.9% in August from a year before, Bloomberg reported, the most in three months, and retail sales and lending figures topped economists' estimates. Imports also accelerated, another sign that Chinese growth is picking up after a second-quarter moderation.
Such evidence of strengthening domestic spending in China undermines the case for Beijing to resist a faster pace of currency appreciation days, economists say.