Yuan records biggest one-day gain in four months

The yuan made its biggest one-day gain against the US dollar in more than four months on Tuesday due to speculation that China will allow its currency to appreciate in order to curb inflation, Bloomberg reported. The Chinese currency rose by 0.35% to 6.8211 against the dollar, from 6.8450, the biggest advance since February 28. The currency has risen by 7.1% this year as the central bank has sought a stronger yuan in order to reduce the cost of imports. One foreign exchange trader was quoted by Bloomberg as saying that there are no signs the central bank will slow the yuan’s appreciation before the Olympics.