Yuan makes biggest one-day gain

The yuan has made its biggest one-day gain against the dollar since it was revalued in July, hitting 8.03 to the dollar. It was the first time the intraday movement had surpassed 0.1%. Meanwhile two of China’s strongest critics in the United States Senate say they are to travel to Beijing for a showdown over the government’s inaction on revaluing the yuan. Democratic Senator Chuck Schumer and Republican Lindsey Graham say this is China’s last chance to avoid trade sanctions. A 27.5% tariff could be slapped on exports to the US. Republican Senator Tom Coburn will also tour the capital, Shanghai and Hong Kong. The group hopes to achieve a breakthrough before President Hu Jintao visits Washington. They argue the yuan is as much as 40% undervalued compared to the dollar, giving Chinese firms an unfair advantage.