The Chinese Yuan Hits a 19 Year High

“China’s yuan rose to a 19-year high after the central bank raised its daily reference rate to the strongest level in more than 10 months.

The People’s Bank of China increased the fixing by 0.08 percent to 6.2689 per dollar, the highest since May 2, 2012. The currency is allowed to trade 1 percent either side of the rate. The Purchasing Managers’ Index for manufacturing in March will be 51, indicating a sixth month of expansion, according to the median estimate in a Bloomberg News survey of economists before official data on April 1. President Xi Jinping is on his first foreign visit since taking over earlier this month and has held meetings with the heads of the so-called BRICs nations of Brazil, Russia and India as well as African countries.

“Investors continue to be convinced about the gradual appreciation of the yuan,” said Samson Tu, a Taipei-based fund manager at Uni-President Assets Management Corp., which oversees $700 million. “The yuan’s recent strength is probably politically driven as Xi is on overseas visits.” …”

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