Yuan hits new high, rises above 7 to the dollar

Macroeconomics

11 April 2008

The yuan rose to its highest level against the dollar in more than a decade on Thursday, the Wall Street Journal reported. The yuan ended trading in Shanghai at 6.9916, compared to 7.0017 in the previous trading session. The yuan has now gained more than 18% against the dollar in less than three years and 4.5% against the dollar in 2008 alone. That the government has allowed the currency to rise to this level is an indication that Beijing sees inflation as a greater danger than the risk of an economic slowdown, the Journal said.

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