Renminbi hits new high

The renminbi surged against the US dollar on Tuesday after China’s central bank set the reference rate lower at 6.7378, down from 6.7509 on Monday, the Wall Street Journal reported. The moves comes shortly before the US House Ways and Means Committee is due to discuss Beijing’s currency policy. US Treasury Secretary Timothy Geithner weighed in ahead of the meeting, saying that China hasn’t done enough to allow the renminbi to rise. The dollar reached a low of RMB 6.7470 shortly after opening at RMB 6.7475 on the domestic over-the-counter market. On Monday it closed at RMB 6.7618. The renminbi’s gains suggest Beijing is becoming more comfortable with currency appreciation, as recent data shows the Chinese economy has rebounded but faces rising inflation.