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Strong greenback hits yuan
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The yuan ended weaker last week but foreign exchange dealers viewed the drop not so much as a change in China's currency stance but more on a stronger United States dollar.

The Chinese currency ended at 6.8422 against the US dollar last Friday, weaker than 6.8350 a week earlier, according to the China Foreign Exchange Trade System.

It appeared that the Chinese authorities have changed their currency stance, maybe to address complaints by exporters who blame the stronger yuan for their business slowdown.

However, it was not the case, as shown in the yuan against the euro. The yuan has added almost 10 percent against the euro since the start of July. The market said the stronger greenback may be a reason for the yuan's weakening.

(Shanghai Daily Semptember 8, 2008))

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