Economics
Yuan Touches 17-Year High as U.S. Lawmakers Wrangle Over Debt
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China’s yuan touched a 17-year high as Democrats and Republicans continued to argue over competing plans to cut the U.S. deficit, unsettling global financial markets and weighing on the dollar.
The central bank set the daily fixing 0.07 percent stronger at 6.4426 per dollar, the highest level since July 2005. The Dollar Index, which tracks the greenback against the currencies of six trade partners, was steady after dropping 1 percent in the previous two days. U.S. lawmakers must agree on a plan to tackle debt and raise the borrowing ceiling before an Aug. 2 deadline or go into default. China’s economy grew 9.5 percent in the second quarter from a year ago, data this month showed.