Friday, May 18, 2007

Malaysian Ringgit Leads Asian Currency Rally; China Widens Trading Bank

(Bloomberg) -- The Malaysian ringgit, which ended a
fixed exchange rate within an hour of China in July 2005, rose to
a 9 1/2-year high, leading a rally in Asian currencies after China
widened the yuan's trading band and raised interest rates.

The yuan will be allowed to move as much as 0.5 percent
either side of a daily fixing rate against the dollar, up from 0.3
percent, the People's Bank of China said in a statement in
Beijing. The central bank also raised interest rates for a fourth
time in the past year and ordered banks to put aside more money as
reserves as it tries to cool the economy and cut a record trade
surplus that has strained ties with the U.S.


Read more at Bloomberg Currencies News

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