Yuan Gains as Wen Promises to Boost Growth, Retreats

The Chinese yuan gained today, before retreating below opening level, after the central bank set the reference rate higher and the head of China said that the government will take measures to boost economic growth of the country.
Chinese Premier Wen Jiabao said that he would give “more priority to maintaining growth” to support the economy that is showing signs of slowdown. The People’s Bank of China raised the fixing by 0.15 percent (the biggest increase since May 2) to 6.3116 per dollar today. China is one of the major importers of the world and the possibility of faster economic growth of the country may support high-risk currencies. For now, adverse mood on the Forex market dragged risky currencies, including the yuan, down.
USD/CNY rose from 6.3263 to 6.3284 as of 15:34 GMT today after falling to 6.3195.

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