The yuan ended higher last week on market speculation that the currency's appreciation pace would pick up as the authorities use it as a tool to battle inflation.
The Chinese currency ended at 6.9018 against the US dollar on Friday at the China Foreign Exchange Trading System, strengthening from 6.9230 a week earlier.
M2, the broadest measure of money supply, rose a higher-than-expected 18.1 percent in May from a year earlier to 43.6 trillion yuan (US$6.3 trillion), the People's Bank of China said on Thursday. The money supply increased 16.9 percent in April. China's money supply grew in May at the fastest pace in four months, adding pressure on the central bank to rein in inflation.
Inflation slowed to 7.7 percent in May, from 8.5 percent in April, but it still exceeded the government's annual target of 4.8 percent.
(Shanghai Daily June 16, 2008)
