Markets

China's yuan hits new high against US dollar

(Xinhua)
Updated: 2010-09-13 11:51

BEIJING - The central parity rate of the yuan, China's currency Renminbi (RMB), hit a new high Monday, according to the data released by the China Foreign Exchange Trading System.

Summer Davos 2010 in Tianjin Related readings:  China's yuan weakens against US dollar Wednesday  China's yuan weakens against US dollar Tuesday

The yuan's central parity strengthened 116 basis points to the highest level of 6.7509 per US dollar Monday from previous record of 6.7625 per US dollar Friday.

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

The central parity against the US dollar has risen by 1.12 percent from the rate of 6.8275 per US dollar, set a day before the PBOC's pledge to increase flexibility.

On the over-the-counter market, the yuan can rise or fall 0.5 percent from the central parity rate during trading each day.

Based on Monday's central parity rate, the yuan weakened against the euro but strengthened against the Japanese yen.

The yuan's parity against the euro was set at 8.6256 Monday, down from the 8.5752 fixing the previous trading day. While the yuan's rate against 100 yen was 8.0153, up from 8.0425 on Friday.