China’s Stronger Currency Could Be a Fig Leaf for Biden

SourceThe New York Times
SectorFinancial Markets
CountryMiddle east

The Coronavirus OutbreakliveLatest UpdatesMaps and CasesVaccination StrategiesVaccine InformationF.A.Q.TimelineChina’s Economy Surges, and So Does Its CurrencyThe renminbi has reached its strongest level in more than two years and shows no signs of stopping, signaling Chinese dominance in manufacturing and giving Biden breathing room.China’s exports have continued to surge even as the renminbi has strengthened.Credit...Agence France-Presse — Getty ImagesBy Alexandra StevensonHONG KONG — China’s economy has come roaring back from the depths of the coronavirus pandemic, and its currency has joined the ride.The currency, known variously as the yuan or the renminbi, has surged in strength in recent months against the American dollar and other major currencies. Through Monday, the U.S. dollar was worth 6.47 renminbi, compared with 7.16 renminbi in late May and close to its strongest level in two and half years.Many currencies tend to jump around in value even more, but Beijing has long kept a leash on China’s, so the renminbi’s leap looks like a power move.The stronger renminbi has implications for companies that make stuff in China, which is a pretty big group. It could make Chinese-made goods more expensive for the world’s consumers, though the effect seems muted so far.The most immediate impact might be in ...read more...