By CHRISTOPHER BODEENAssociated Press Writer

AChinese seamstress puts together a garment at a clothing factory on the outskirts of Beijing in this May 30, 2005 file photo. The impact of China’s decision on Thursday, to cut its currency’s tie to the U.S. dollar will reverberate through the world economy, creating thousands of winners and losers at home and abroad. The decision immediately raised the value of the yuan by 2.1 percent against the dollar, pushing up the price of Chinese exports and offering a brief relief to foreign companies that are trying to compete with a flood of low-priced Chinese exports. (AP Photo/Elizabeth Dalziel, File) SHANGHAI, China — China allowed its currency to rise slightly against the dollar on Friday, beginning a new era in cross-Pacific trade that American manufacturers hope will bring them relief from the avalanche of low-cost Chinese goods.

Chinese companies also could get a break as prices of imported oil and other raw materials will fall. Also, a stronger currency could prompt more takeover bids by China like its recent grab for U.S. oil major Unocal Corp. and appliance maker Maytag Corp.

The yuan opened at 8.11 to the dollar a day after the government said it would allow its currency to float in a tight range against a basket of foreign currencies. That was about 2 percent more than the previous rate of about 8.277, where the yuan had been fixed for the last decade.

The yuan closed at 8.1111 to the dollar, down only slightly. Currency traders said that indicated China’s central bank was likely buying dollars to stabilize the yuan.

China’s policy of fixing the yuan’s value to the dollar had drawn fire from the Bush administration, which accused Beijing of keeping its currency undervalued by as much as 40 percent to boost the competitiveness of Chinese exports. U.S. manufacturers complain of having to close factories while Chinese-made goods flood American department stores.

As of Friday, the yuan was limited to moving within a 0.3 percent band each day against a collection of as-yet unnamed foreign currencies. The value at the end of each day will become the midpoint of trading for the next day, which could let the yuan edge up incrementally.

The U.S. government welcomed Thursday’s announcement from the rising economic and military power, but said it would closely watch the changes.

The effect on U.S. financial markets was immediate: The dollar fell against other major currencies and yields on U.S. Treasury securities rose. If that rise in interest rates is sustained, it could make it more expensive for U.S. consumers to finance purchases of new cars, homes and other big-ticket items.

There was no clear explanation for why China took the step now after rejecting foreign pressure for years and insisting that such a decision would be based solely on its own domestic economic concerns.

China’s central bank said only the change was being made to ‘‘improve the socialist market economic system.’’

Economists had warned that China’s economy may be overheating.

The government’s latest figures showed the country’s gross domestic product grew at an annual rate of 9.5 percent in the first half of 2005 compared to the same period a year earlier, despite efforts to rein it in.

The more flexible rate could help Chinese companies deal with price shocks and boost exporters’ profits even if sales fall, said Frank Gong, managing director of JPMorgan Chase & Co. in Hong Kong.

‘‘It will help balance Chinese trade flows,’’ he said. ‘‘It will help reduce the trade tensions that China has experienced with all of its major trading partners.’’

A stronger yuan could also encourage domestic spending, making China’s economic growth less dependent on exports, he said.