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China loosens currency grip as G20 summit looms

June 21 2010

China's surprise move to relax currency controls ahead of this weekend's G20 summit buoyed global markets and sent the yuan to a five-year peak on Monday, but caution returned as analysts questioned how farBeijing's new currency flexibility would go.  Stock markets surged after China loosened the yuan's 23-month-old peg to the U.S. dollar, easing a policy aimed at steadying its economy during the global downturn and paving the way for the currency to appreciate….