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Yuan equals 2007 gains
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The yuan rebounded last week and its appreciation so far this year has equaled its gains for all of 2007 as Chinese mainland authorities favor a quicker pace of appreciation in a bid to tame inflation.

The yuan ended at 6.8354 against the US dollar last Friday, up from 6.8589 a week earlier, according to the China Foreign Exchange Trade System. The yuan touched an intraday high of 6.8352 last Friday, which was also its strongest since the end of the US dollar peg. So far this year's gain has risen to 6.86 percent.

Traders said it is still unclear whether the quicker pace can continue as the central government may slow the appreciation.

Economists are concerned that China's economy may slow down in the second half especially in the third quarter.

The central government is putting the inflation battle as one of its top priorities this year.

It's common for the yuan to hit fresh records since the US dollar link was scrapped in July.

(Shanghai Daily July 14, 2008)

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