The Chinese yuan or ‘remninbi’ hit a record high against the US dollar on Monday amidst the strong volatility visible in the country through December. Yuan gained for a second straight day, reaching a record of 6.3287 in morning trading, after the central bank guided the currency stronger via its daily reference exchange rate, set 0.07 percent higher at 6.3167 per dollar.
In December, the yuan touched the bottom of the daily trading range of 0.5 percent on 12 out of the month’s 18 trading days. The currency also posted a record one-day gain of 0.4 percent on Dec 16.
Bloomberg reports that Japan and China will promote direct trading of the yen and yuan without using dollars and will encourage the development of a market for companies involved in the exchanges, the Japanese government said.
There is no doubt in my mind that there are going to be dire things happening in Euorozone currencies this year; this news of the Yuan is something that all U.S. Manufacturers should think about as it’s direct impact on us will be greater than all that Eurozone drama, in my opinion.