Oct. 31 (Bloomberg) -- China’s yuan rose this month, approaching a 17-year high, as policy makers said they remain focused on cooling inflation.
The nation continues to need efforts aimed at reducing inflation, Vice Finance Minister Zhu Guangyao said at a conference in Beijing on Oct. 28. The currency has appreciated 3.7 percent so far this year and third-quarter economic growth of 9.1 percent was the slowest since 2009.
“The yuan is still pretty much within the 3 to 5 percent expected annual pace of appreciation,” said Teck Kin Suan, an economist at United Overseas Bank Ltd. in Singapore. “Inflation is one thing policy makers are quite concerned about. They also want a predictable kind of environment for exchange rates for export and import companies.”
The yuan strengthened 0.5 percent this month to 6.3549 per dollar in Shanghai, according to the China Foreign Exchange Trade System. It reached a 17-year high of 6.3375 per dollar on Oct. 11. The currency rose 0.06 percent today. In Hong Kong’s offshore market, the yuan climbed 1.6 percent to 6.3919 this month and declined 0.2 percent today.
Twelve-month non-deliverable forwards advanced 0.9 percent in October to 6.3625 in Hong Kong, according to data compiled by Bloomberg. The contracts fell 0.1 percent today.
The People’s Bank of China set the currency’s daily rate 0.09 percent higher at a record 6.3233 today.
Consumer prices rose 6.1 percent last month from a year earlier after having increased 6.2 percent in August, official data showed on Oct. 14. The inflation rate has exceeded the government’s annual target of 4 percent every month this year.
China will “fine tune” its economic policies at an appropriate time and ensure “reasonable” money-supply growth in the coming months, according to a government statement on Oct. 29 after a State Council meeting chaired by Premier Wen Jiabao.
--Editors: Sandy Hendry, James Regan
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