The yuan strengthened against the dollar on Wednesday to its highest level in 10 months, reversing its depreciation trend.

On Wednesday, the pair closed at 6.68 versus 6.70 on Tuesday. On Jan 2, the first trading day of the year, it was at 6.94.

Better-than-expected economic recovery and efforts to open up the domestic capital market to foreign investors will probably push the yuan further up against the dollar in the short term, experts said.