Yuan Gains as Its Dollar Peg Expected to End

The Chinese currency appreciated today against the dollar as China relaxed the yuan’s peg to the U.S. currency, the move which should stop blames for unfair trading advantage, brought by undervalued currency, from the U.S. President and other G-20 leaders.
According to the opinion of the People’s Bank of China, the stronger yuan should help to reduce the inflation and turn the investment from the manufacturing to the service industries. The economists say that the appreciation may be slow but sure.
USD/CNY traded at about 6.7978 10:03 GMT after opening at 6.8282.

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