Yuan hits record high with capital inflows

China’s yuan rose to 6.2262 per US dollar early Tuesday, a record high since the country unified its official and market exchange rates in 1993, Bloomberg reported. The currency, closing at 6.2265 per dollar, increased by 1%, hitting the top end of its daily trading limit for a seventh day in a row. Investors have flocked back to China amid recent signs of its stronger economic growth prospects. “Capital returns to China as over-pessimism on the economy has been dismissed by recent data,” said Tommy Ong, a Hong Kong-based senior vice president of treasury and markets at DBS Bank (Hong Kong). “There’s also an expectation that the government will focus on growth instead of stability when the congress ends.” The yuan grew 0.07% to close at 6.2193 per dollar in Hong Kong’s offshore market Tuesday, after hitting a record high of 6.2170 earlier.