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Yuan Seen Reaching 17-Year High on Rate Increase: China Credit

China’s yuan may hit a 17-year high in the coming week as stocks rise and bonds fall after the central bank raised interest rates for the third time in four months to curb inflation, if history is a guide.

The currency of the world’s fastest-growing economy closed at 6.5938 per dollar in Shanghai today, unchanged from its close on Feb. 1, the last day of trading before the weeklong Lunar New Year holiday. It reached 6.5808 on Jan. 21, the strongest level since China unified official and market exchange rates at the end of 1993. The one-year interest-rate swap jumped 22 basis points to 3.90 percent.