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RMB exchange rate against US dollar hits new high

By Du Xiaoli (chinadaily.com.cn)
Updated: 2007-03-19 17:03
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The exchange rate of therenminbi(RMB) against the US dollar hits a new high on March 19. The central parity of the RMB against the US dollar is 7.7351 yuan to one US dollar on March 19, the China Foreign Exchange Trading System announced.

China on March 17 announced it would raise interest rates for the third time in 11 months to curb inflation and reduce asset bubbles. The one-year benchmark lending rate was raised to 6.39 percent, its highest in almost eight years, from 6.12 percent, according to the People'sBank of China. The one-year deposit rate was increased to 2.79 percent from 2.52 percent. Both increases were effective yesterday.

The interest rates hike will increase the pressure of RMB's appreciation to a certain extent, said experts.

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