Chinese yuan sets new record high after Federal rate cut
Updated: 2008-01-24 11:45
China's currency, the yuan, hit another record high of 7.2293 against the US dollars on Thursday after a key interest rate cut in the United States.
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Chinese shares rebounded by more than 3 percent on Wednesday after the earlier-than-expected US rate cut overnight eased concerns about a declining US economy. The Shanghai and Shenzhen bourses opened more than one percent higher on Thursday, but went down to around previous close prices after a while.
The US Federal Reserve slashed the benchmark federal funds rate by 0.75 percentage point to 3.5 percent, in an emergency attempt to ward off rising fears of US recession.
The rate cut has prompted the US dollar to fall sharply against other major world currencies.
To date, Chinese yuan has appreciated more than 12 percent against the greenback after it was revalued with the ending of its peg to the US dollar in July 2005.
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