18 Aug '11, 3am

China allows currency to rise as inflation persists: SHANGHAI - China has allowed its currency to hit a series o...

China allows currency to rise as inflation persists: SHANGHAI - China has allowed its currency to hit a series o...

SHANGHAI - China has allowed its currency to hit a series of record highs against the dollar over the past week in a move analysts say may signal a new strategy to combat the growing threat of inflation. Beijing is anxious about the potential for social unrest as living costs rise, and about slowing in the Chinese economy at a time of renewed global financial peril. And with other macro-economic tools threatening to stymie domestic growth, a climb in the value of the yuan - which would make dollar-denominated imports like oil cheaper - might help to keep a lid on prices. It would also have the added benefit of easing tensions with the US, where lawmakers complain the strong currency gives Chinese exporters an unfair advantage. In the run-up to a high-profile visit by US Vice President Joe Biden, Beijing has allowed the yuan to strengthen to record levels. China allows the ...

Full article: http://www.asiaone.com/Business/News/Story/A1Story2011081...

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