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China may widen the yuan’s trading band in the “next few weeks” as policy makers favor a more flexible exchange rate to combat inflation, according to Standard Chartered Plc.

The range may be widened to allow the currency to trade as much as 1 percent on either side of a daily fixing set by the People’s Bank of China, currency strategists Callum Henderson and Robert Minikin wrote in a research note today. It was last widened to 0.5 percent from 0.3 percent in May 2007.

 Source

Bloomberg