The yuan strengthened against the.......>

CHINA PRESS: The yuan strengthened against the dollar and the yuan central

parity rose 269 basis points Thursday, mainly due to the weakening of the

dollar, the Securities Daily reported Friday. The yuan may fluctuate around a

rate of 6.60 to the dollar. Analysts said that a drop in the dollar index

followed the release of the minutes of the U.S. central bank's Federal Open

Market Committee, showing that some committee members hesitated about the Fed

further increasing its benchmark interest rates. Also supporting the

strengthening of the yuan, recent fluctuation in the Chinese bond market have

caused the yield of 10-year treasuries to rise to more than 4%. Wang Qing, head

of the trade and finance center at the Suning Financial Research Institute, told

the newspaper that there is a high chance the People's Bank of China will

increase liquidity injection into the market. He added that in the short term,

it is unlikely the treasury yield will continue to be higher than 4%. The spread

between Chinese and U.S. treasury yields is expected to recover under the

central bank's injections, Huang said. (Securities Daily)