Markets

Yuan rises to record high against US dollar Wednesday

(Xinhua)
Updated: 2010-09-15 11:39

BEIJING - The central parity rate of the yuan, China's currency Renminbi (RMB), strengthened to a new record Wednesday at 6.725 per US dollar, according to the data released by the China Foreign Exchange Trading System.

The yuan's central parity gained 128 basis points, or 0.19 percent, to 6.725 per US dollar Wednesday, beating the previous record of 6.7378 per US dollar Tuesday, according to the data released by the China Foreign Exchange Trading System.

Double dip unlikely Related readings:  China's yuan rises to new high against US dollar  China's yuan hits new high against US dollar

The Chinese currency has appreciated for four consecutive trading days.

The Chinese currency has seen increased volatility in the trading days since the People's Bank of China (PBOC), the central bank, announced on June 19 this year to increase exchange rate flexibility.

The yuan's central parity against the US dollar has risen by 1.5 percent from the rate of 6.8275 per US dollar, set a day before the PBOC's pledge to increase flexibility.

On China's foreign exchange spot market, the yuan can rise or fall 0.5 percent from the central parity rate during trading each day.

Based on Wednesday's central parity rate, the yuan weakened against the euro, the Japanese yen and the British pound.

The yuan's parity against the euro was set by the central bank at 8.7499 Wednesday, higher from 8.6561 fixed Tuesday. The yuan's rate against 100 yen was 8.0941, up from 8.0833 Tuesday. While the rate against the British pound was 10.4493, compared with Tuesday's 10.3634.

The Chinese currency's value also rose against the Hong Kong dollar and Malaysian Ringgit Wednesday based on its parity rates against them.