Yuan Appreciates as China’s Economy Continues to Grow

The Chinese yuan rose today on the speculation that China’s foreign reserves, which are largest in the world, would support the currency despite the European debt troubles and the tensions among North and South Korea.

China continues to show the fast economic growth, supporting the yuan. China’s Manufacturing PMI rose from 54.7 in October to 55.2 in November. The International Monetary Fund estimated that China’s gross domestic product expanded 10.5 percent this year, following the growth by 9.1 percent in 2009. The Chinese policy makers attempt to make the currency appreciation slower in order to protect smaller businesses.

USD/CNY fell from 6.6641 to 6.6612 as of 9:53 GMT today.

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