Yuan Reaches Upper Limit on Optimism for U.S. Budget Resolution

China’s yuan reached the upper end of its trading limit on speculation the U.S. will succeed in avoiding the so-called fiscal cliff that threatens to push one of the Asian nation’s biggest export markets into recession.

Regional currencies and stocks advanced after President Barack Obama expressed confidence that he would reach agreement with Congress to avoid the $607 billion of spending cuts and tax increases. The yuan has gained 2.6 percent from this year’s low touched on July 25, which may help appease U.S. politicians who say China keeps the currency undervalued to boost trade. Obama is attending meetings of the Association of Southeast Asian Nations this week amid a spat between China and Japan over ownership of islands.