China´s yuan hits almanac aerial adjoin dollar afterwards US decline CCTV News
Impacted by the US downgrade, China’s currency rose to a record trading high on Monday against the greenback. Analysts say the current environment could be an opportunity for China to step up efforts to increase the appeal of the yuan. As the largest foreign owner of treasuries, insiders say the rise of yuan on Monday reflects China’s concern over the outlook for the US market and the possibility of a US default. The dollar also fell lower against the euro and British pound. Cui Haitao, a forex dealer from Bank of China said, “The S&P downgrade of the US debt has put the market into a mood for immunization. Investors are turning to risk-free assets. For instance, gold saw a significant rise. So did the Japanese yen and Swiss franc, since foreign currency is traditionally considered a risk-free alternative.” Some analysts say the US rating cut could be an opportunity for China to step up efforts to increase the appeal of the yuan. They say currency appreciation could also help China ease high inflation. Information provided by cctv.com Thank you www.cctv.com To watch CCTV News 24 live news feed click here: english.cntv.cn www.youtube.com
