The Chinese yuan that rose to a 4-day high of 6.3055 against the US dollar in early Asian deals on Monday amid the release of the country's inflation data erased some of its gains shortly. As of now, the yuan is worth 6.3080.
Inflation in China increased more than expected in March after easing to a twenty-month low in February, data from the National Bureau of Statistics showed. The latest rise in inflation rate was mainly driven by rising food costs.
Inflation rose to 3.6 percent in March from 3.2 percent in February. Economists had forecast an increase to 3.4 percent.
Separately, the statistical office said that the producer price index fell 0.3 percent from March 2011. The outcome was in line with expectations and followed a flat reading in February. Prices have been falling steadily since July last year.
The People's Bank of China set today's central parity rate for the yuan at 6.3021 per dollar, compared to Friday's daily reference rate of 6.3072.
The Chinese central bank sets the central parity rate every morning and allows the currency to fluctuate up to 0.5 percent from that level.
by RTT Staff Writer
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