The Chinese yuan strengthened today as the central bank kept its reference rate unchanged and after the stress test of the European banks failed to improve the confidence in the strength of Europe’s economy.
Seven from 91 banks tested required to raise the combined â¬3.5 billion of capital, signaling that the recovery may be faltering. China’s economy continues to expand, in the same time, threatening to increase the inflation rapidly. More flexible yuan may help in this matter. Chinese currency expected to appreciate further by 3 percent this year.
USD/CNY declined from 6.7813 to 6.7798 today as of 10:37 GMT.
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