China's yuan strengthened beyond 8.1040 per dollar on Tuesday, recording a post-revaluation high for the fourth straight session as dealers gained confidence that central bank would keep allowing small gains.
With the market still developing its expertise, dealers said they were beginning to watch the movements of other currencies, and had taken the dollar's weakness against the euro and yen as a reason for the yuan to rise on Tuesday.
The yuan closed at 8.1032 per dollar after climbing as high as 8.1030, extending tiny gains as the central bank, which has been inactive for days, again stood aside and gave the currency room.
Dealers said the market was gaining confidence that Beijing would not step in to curtail a gradual appreciation of the currency - which was revalued on July 21 - but they remained wary of pushing it too far too fast.
The dollar hit a 1-1/2 week low versus the yen and slipped against the euro on Tuesday.
The euro was up 0.3 percent at $1.2217 after pushing to a 1-1/2 week high $1.2249 on Monday. Against the yen, the dollar was down 0.7 percent at 111.40 yen.
Comments
Comments are closed.