China's yuan firms vs dollar ahead of Bush visit

[china...@yahoo.com]

SHANGHAI, Nov 18 (Reuters) - China's yuan strengthened against the
dollar on Friday, as the central bank let the yuan appreciate slightly
a day ahead of U.S. President George W. Bush's China visit, dealers
said.
The yuan, which was revalued by 2.1 percent on July 21 to 8.11 per
dollar, closed at 8.0832, versus 8.0845 on Thursday.

"The yuan's strength today was pretty much expected. A stronger
currency would help to fend off some U.S. pressure," said a trader with
a major state lender.

U.S. law-makers complaining that the yuan is still seriously
undervalued have been calling for further appreciation of its value.

Bush, due to arrive China on Saturday, has called on Beijing to do more
to let market forces drive the yuan's value.

The Chinese currency has now appreciated a further 0.33 percent since
the policy move in July. ADVERTISEMENT

Dealers, while expecting the yuan's value to go up further in the
long-run, said that it could lose some steam after Bush wrapped up his
visit next week.

On Friday it weakened against the euro to close at 9.4569, versus
9.4406 on Thursday, but firmed to close at 6.7823 per 100 yen from
6.7950, the central bank said on its Web site (www.pbc.gov.cn).

One-year onshore yuan forwards were quoted at 7.7920 per dollar,
anticipating that the yuan would be 4.1 percent stronger in a year's
time. Three deals were done.