The yuan's appreciation was maintained last week but traders say it might slow down in the following weeks.
The yuan ended at 6.8169 against the US dollar on Friday, up from a week earlier's 6.8354, according to the China Foreign Exchange Trade System. Despite the week-on-week appreciation, the central parity rate of the yuan slowed on Thursday and Friday, triggering some thoughts that the yuan's appreciation could slow down in the future.
Last week, China posted the first-half economic data, with a June inflation of 7.1 percent, or a first-half inflation of 7.9 percent.
The central government still considers fighting inflation as a top priority. Traders said the central government may slow the appreciation pace to cushion a possible slowdown on trade surplus and economy in the second half of this year.
(Shanghai Daily July 21, 2008)
