SHANGHAI, May 24 (Reuters) - China's yuan inched higher
against the dollar on Monday, even against a weaker fixing,
after a senior central bank official over the weekend reiterated
no change to the currency policy.
Deputy governor of the central bank, Liu Guoqiang, said on
Sunday that fluctuations in either direction will become the
norm for China's currency, with the yuan exchange rate
continuing to depend on market supply and demand, as well as
changes in global financial markets.
"China's central bank crashed the speculation about possible
currency regime change," said Tommy Xie, head of Greater China
research at OCBC Bank in Singapore.
"The People's Bank of China (PBOC) reiterated that its
managed floating exchange rate system based on market demand and
supply with reference to a basket of currencies will remain
suitable for the foreseeable future."
Currency traders said Liu's remarks clarified...
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