Yuan hits historic high

The yuan hit a 19-year high on Thursday, closing at 6.1560 per dollar, Bloomberg reported. The People’s Bank of China raised the fixing rate, the maximum the currency is allowed to deviate from the dollar, by 0.2 percent amid speculation that monetary stimulus in the US would create faster gains. Morgan Stanley announced that it has revised its year-end forecast for the yuan to 6.1 per dollar from 6.3 previously. Measurements of the exchange-rate swings of the onshore yuan, known as implied volatility, also rose 0.21 percentage points to 1.68% because of uncertainity over China’s manufacturing sector and stimulus in the US.