Yuan hits new high against dollar

Beijing may allow the yuan to rise faster than expected to curb the country's growing trade surplus, the Wall Street Journal reported as the yuan hit a new high against the US dollar Wednesday. The dollar closed at 7.7740 yuan, down from 7.7900 on Tuesday. On the same day, Vice Premier Wu Yi said China will strive to reduce the trade imbalance in 2007. The trade surplus hit US$177 billion in 2006. The newspaper said the market saw the official comments as a signal that the yuan may be given more room to rise this year. Meanwhile the Hong Kong dollar fell below its official peg to the US dollar in Asian trading Wednesday, with the dollar up to HK$7.8033 from HK$7.7998 late on Tuesday.