Yuan to Rise on Price-curbing Bid

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    The Chinese yuan is likely to appreciate this week as the government embarks on more efforts to limit the increase in consumer prices.
    The currency settled at 7.5440 against the US dollar on Friday, up from 7.5669 a week earlier. It has appreciated 8.9 percent since the fixed exchange rate of 8.28 to the US dollar was abandoned on July 21, 2005.
    China will take timely steps to stabilize prices and closely monitor inflation, said Su Ning, deputy central bank governor, last week.
    Inflation jumped in July to 5.6 percent, the strongest increase in more than a decade. The central bank has boosted borrowing costs four times and ordered lenders to set aside larger reserves on several occasions this year in a move to curb prices.
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