China Widens Trading Limit for Yuan
Friday, May 18, 2007; 7:15 AM
BEIJING -- China widened the daily trading limit for the yuan against the U.S. dollar, a move that would allow its currency to rise faster in value against the U.S. dollar amid pressure by Washington to ease exchange rate controls.
The Chinese central bank said it was widening the band in which the yuan is allowed to fluctuate in either direction against the dollar each day from 0.3 percent to 0.5 percent.
Washington has been pressing Beijing to let the yuan's value rise faster in hopes of narrowing multibillion-dollar U.S. trade deficits with China by making Chinese goods more expensive.