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July 5, 2008 5:36:46 PM CDT

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Skyrocketing Yuan Hits Benchmark

Posted Apr 10, 08 2:34 PM CDT in Business,  World    Editor's Choice

(Newser) – For the first time since China unpegged its currency from America’s in 2005, a dollar bought less than 7 yuan at closing today in Beijing, the New York Times reports. Western countries protested for years the yuan was undervalued; its meteoric rise means Chinese goods are getting more expensive in the US—raising inflation fears.

When China ended the peg, in July 2005, a dollar bought about 8.3 yuan; as the government has allowed the currency to appreciate more freely, it has gained 16% on the dollar, including more than 4% this year alone. Analysts (and even the US Treasury Secretary) applauded the development, which one said could help “rebalance the global economy.”

Source New York Times

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A currency exchange sign hangs on a street in Hong Kong.   (AP Photo/Kin Cheung)
Chinese yuan-US dollar exchange rate since 2005.   (AP Photo)
A bank clerk counts Chinese currency notes in Shenyang, northeast China. The yuan has risen sharply against the dollar in the last 3 years.   (AP Photo)
A model parades in a "Bandi Panda" creation in the shape of a Chinese one hundred yuan note. The yuan rose against the dollar today.   (AP Photo/Andy Wong, File)
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US dollar  • Henry Paulson  • weak dollar  • global economy  • yuan  • Chinese economy  • US imports


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