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China's yuan firmed against the dollar on Wednesday as the greenback lost some of its momentum on global markets, dealers said. The dollar shuffled within a tight range on Wednesday after slipping from two-year highs against the euro and yen in the previous session when investors booked profits on worries that the currency had risen too high, too quickly.
"That has helped to pushed up the yuan today," said a trader with a local lender.
The yuan, which was revalued by 2.1 percent on July 21, closed at 8.0835 versus 8.0845 on Tuesday. It is now 0.33 percent stronger than it was immediately after the revaluation.
American lawmakers complaining that the yuan is still seriously undervalued have been calling for further appreciation of the currency, also known as the renminbi.
Federal Reserve chairman nominee Ben Bernanke said on Tuesday that it was in China's own interest to let its currency float freely and that he hoped Beijing would let it do so. The yuan weakened against the euro to close at 9.4651 vs 9.4505 on Tuesday but strengthened to close at 6.7765 per 100 yen from 6.7993, the central bank said on its Web site.

Copyright Reuters, 2005

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