The renminbi posted gains against the dollar on Monday after People’s Bank of China (PBoC) Governor Zhou Xiaochuan said that the currency could appreciate over time, provided the economy remains on track and inflation low, the Wall Street Journal reported. The renminbi reached an intraday high of 6.6678 to the dollar, its strongest level since trading of the currency began in 1994. Interviews with traders suggested that Zhou’s comments were widely interpreted to mean that the central bank would allow the currency to further appreciate against the dollar over the medium term. An IMF meeting over the weekend ended inconclusively, as the US and EU tried without avail to pressure Chinese leaders to allow a rapid appreciation of the currency.
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