The Chinese currency hit a record high against the dollar. On May 30 People's Bank of China set the US dollar on the level 6.4856 yuan. According to BBC News, this happened after the US Department of the Treasury announced that the Chinese currency is undervalued, however the Chinese government does not manipulate the yuan’s rate.
The previous high against the dollar was hit last week on Thursday, Dow Jones says. By this moment the dollar has reached the 6.4858 level.
In the middle of 2010 People's Bank of China announced that it intends to achieve more flexible yuan rate. According to Dow Jones, since then the Chinese currency has gained more than 5% against the US dollar.
The US have accused China of lowering of its currency rate for several times. The US party thinks that undervalued yuan is the reason of the US deficit in its trade with China and creates favourable conditions for Chinese exporters. In the end of 2010 China Central Bank decided to detach the yuan from the dollar and raise its rate against the US currency by approximately 2%.
