RMB sets new high water mark

The Renminbi set a new high against the dollar for the third day running Thursday, closing at US$7.9233 and hitting a peak of US$7.9230 during trading. It was the highest level since Beijing freed the yuan from its dollar peg in July 2005 in favour of a basket of currencies. The high watermark for China's currency came on the same day that visiting US Treasury Secretary Henry Paulson once again pushed for more currency flexibility. "My view is that the economy has now changed to the point where it's big and complex enough that I think the risk is not moving fast enough," Paulson told the Wall Street Journal.