The Yuan reached its highest level for two and half years against the US dollar during early Monday trading. The Chinese currency rose as the Chinese central bank set the official exchange rate at the highest level since 2005, in a move that is seen by many as a significant statement from Beijing and indicative of China’s desire to assume a more pivotal role in global foreign exchange markets. The Yuan gains also supported other Asian currencies as well as more broadly risk associated currencies, such as the Australian dollar.
