Yuan hits record level against the dollar

[Vessol]

China's currency has risen to a record high against the dollar, in a sign that Beijing intends to use the currency to fight inflation.

There were official reports that China should let its currency appreciate more quickly to head off inflationary pressures from soaring oil prices.

Oil prices are close to two-year highs and Beijing is concerned that energy-hungry China is importing inflation.

This has led to complaints among the population about rising prices.

On Tuesday, the yuan traded in a range from 6.5552 - a record high - to 6.5596. The currency ended at 6.5561 versus the dollar.

The currency has now risen about 4.1% since June 2010 and 0.2% so far this week.

http://www.bbc.co.uk/news/business-12816447

[sailingaway]

Were it any other country I'd be concerned. But maybe it will make them import more of our stuff.

[low preference guy]

Were it any other country I'd be concerned. But maybe it will make them import more of our stuff.

Another positive aspect is that they can't print money to buy treasuries anymore if they want to combat inflation, which will force Bernanke to stop printing money at some point.

[devil21]

Wait....this would imply that the Yuan has the 7-1 peg removed? Did I miss the memo that the Yuan is no longer tied to the dollar?