Renminbi forwards continued to climb this week on speculation that China may relax its peg to the dollar ahead of upcoming US-China talks, Bloomberg reported. The renminbi’s 12-month non-deliverable forwards appreciated 0.2% to RMB6.6675 per dollar as of 9:57am in Hong Kong, reflecting expectations the currency will rise 2.4% from the spot rate of RMB6.8276. The strengthened renminbi forwards extended this week’s rebound from an eight-month low. US Treasury Secretary Timothy F. Geithner will attend the second US-China Strategic and Economic Dialogue in Beijing on May 24-25. "Some adjustment could take place before the talks as back in 2007 they announced the widening of the trading band a week before the strategic talks," said Suan Teck Kin, an economist at United Overseas Bank in Singapore. Analysts expect China may allow the renminbi to appreciate by June 30 in order to curb inflation, while avoiding a one-time jump in value that may curb exports.