Yuan hits all-time high

(Reuters) – The yuan closed up against the dollar on Monday after hitting an all-time high in intraday trading, guided by a stronger mid-point by the People’s Bank of China, and looks set for an over-4-percent appreciation for 2011, traders said.

The yuan is expected to remain stable or rise slightly in the last week of the year to close 2011 near 6.30 versus the dollar, in line with market expectations.

The currency is likely to continue to appreciate next year as China continues to post big trade surpluses despite a slowdown in exports and amid pressure from the United States to let the yuan rise to balance bilateral trade, traders said.

But the yuan’s appreciation is likely to slow to around 3 percent in 2012, with much of the rise seen in the second half of next year as China may keep the yuan relatively stable in the first half to assess the impact of the euro zonecrisis, they said.

http://www.reuters.com/article/2011/12/26/us-markets-china-yuan-idUSTRE7BP03220111226?feedType=nl&feedName=usdai