Yuan Heads for Fifth Weekly Gain as China Seeks to Cool Economy

Jan. 11 (Bloomberg) -- The yuan headed for a fifth weekly gain, the longest winning streak since September, on speculation China is seeking faster gains to cool the economy.

The currency also rose as the state-run Xinhua News Agency reported today that the nation's trade surplus surged to a record for 2007, adding to pressure for yuan gains. The World Bank this week forecast China will grow more than 10 percent this year and next, which may fuel inflation already at the fastest in more than a decade.

``The pace of appreciation has been increasing and we're seeing the market raise its expectations over the pace of gains,'' said Thio Chin Loo, a senior currency analyst at BNP Paribas in Singapore. ``They're using a tighter policy to cool things down, and stepping on the brakes some more.''

The yuan gained 0.1 percent to 7.2644 versus the dollar as of 12:46 p.m. in Shanghai, compared with 7.2719 yesterday, according to ....
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