The Chinese yuan (RMB) continued to appreciate against the US dollar last month, Caixin Global, reports, with the biggest monthly increase in value since the currency’s revaluation in 1994.
The yuan currently buys 6.2888 dollars in the onshore spot market, following a 3.5% jump in January. For 2017 as a whole, the currency rose by 6.7%, bouncing back from three years of depreciation.
U.S. Treasury Secretary Steve Mnuchin expects the dollar’s fall in January against all major currencies to have a positive effect on the U.S economy. He said in Davos last week that the weaker dollar will be “good for us as it relates to trade and opportunities.”
Market analysts are speculating as to whether the state-owned People’s Bank of China will intervene to dampen the yuan’s climbing valuation, as it has done in the past.