Feb. 2 (Bloomberg) -- China’s yuan rose for a fourth straight day, headed for its longest winning streak since October, on signs the global economic recovery will withstand Europe’s credit crisis.
U.S. manufacturing grew at the fastest pace since June last month and China’s purchasing managers’ index rose more than economists predicted, data showed this week. The European Central Bank is unlikely to show its hand on how it will help cut Greece’s debts until investors and the government have agreed on a deal, according to economists from ING Group to Deutsche Bank.
“Investors are pleasantly surprised by the latest set of global manufacturing data, which implies brighter prospects for Chinese exports,” said Stella Lee, president of Success Futures & Foreign Exchange Ltd. in Hong Kong. “However, investors won’t be blindly optimistic as they know that the problems in Europe, if they worsen, could drag the market down.”
The yuan advanced 0.08 percent to 6.3016 per dollar as of 10:28 a.m. in Shanghai, according to the China Foreign Exchange Trade System. The currency has gained 0.59 percent this week.
The People’s Bank of China raised the daily reference rate by 0.04 percent to 6.3075. The yuan is allowed to trade as much as 0.5 percent on either side of the rate.
In Hong Kong’s offshore market, the yuan was little changed at 6.2955, after rising 0.3 percent in the past two days, according to data compiled by Bloomberg.
Twelve-month non-deliverable forwards traded at 6.2801, from yesterday’s 6.2805. The contracts were at a 0.3 percent premium to the onshore rate.
--Editors: Ven Ram, Sandy Hendry
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