The Chinese Yuan is continuing to rise in forex trading amidst a weakening US. Dollar. Despite this sudden rise, the Chinese government continues to control their currency, keeping it low which is affecting US. trade with China. Investment bank JPMorgan is assuming the yuan will reach 7.75 against the US dollar by year's end, due to strong trade ties and economic growth. Trade surplus for China was up a record level of 187 billion Yuan during October, with foreign exchange reserves reaching up to 7.9 trillion Yuan.
In forex, the Yuan increased by 0.11 percent to 7.8436 against the US. Dollar. Ever since control was released in July 2005, the Yuan has gained 3.3 percent.
The US. trade deficit has continually widened by 1 billion US. Dollars to 23 billion US. Dollars during the month of October. Officials including the Federal Reserve chairman, Ben Bernanke and US. treasury secretary Henry Paulson will visit China to lobby for a more flexible Chinese Yuan.
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