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China Widens Yuan Trading Range

It also plans to raise some rates.
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China said it would let its currency trade in a wider band against the dollar and set plans to raise interest rates to clamp down on credit growth.

The People's Bank of China said that starting Monday, it will allow the yuan to trade within 0.5% of its so-called central parity rate with the dollar, which is around 7.7 yuan to the dollar. The previous range was 0.3%.

Investors have been watching currency moves in China because the world's fastest-growing economy has been a big buyer of dollars, so changes in the exchange rate are seen as having bigger economic implications.

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