RMB forwards rise as US delays Treasury report

Renminbi forwards rose Monday morning as speculation strengthened that China will continue to allow its currency to appreciate, Bloomberg reported. As of 9:48 a.m. in Beijing, 12-month non-deliverable forwards rose 0.4% to 6.40 per US dollar, a 3.9% premium over the currency’s spot rate. After four days of higher reference rates, the People’s Bank of China set Monday’s rate at a slightly lower 6.6541 per US dollar. On Friday, the US Treasury Department chose to delay the release of a report that some market watchers had expected would officially label China as a currency manipulator. Treasury Secretary Timothy Geithner said that appreciation of the renminbi would be a "gradual process." The renminbi has risen about 2.7% against the US dollar since the removal of a de facto peg in June.