Yuan Gains as China Plans Reforms
The Chinese yuan gained today on signs that the government is planning to ease control over the currency and allow capital to move more freely in and out of the country.
The People’s Bank of China set its reference rate up 0.05 percent to 6.2083 per dollar today. Premier Li Keqiang promised fiscal reforms, including regulations that will allow individuals to invest overseas. The pledge followed speculations that the central bank will widen trading range for the currency. Hopes for reforms make Forex analysts bullish on the yuan in the long term.
USD/CNY fell from 6.1715 to 6.1585 as of 14:18 GMT today.
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