Economy

Chinese yuan reaches new high at $6.6732 per dollar

(Xinhua)
Updated: 2010-10-11 11:02

BEIJING - The value of yuan, China's currency renminbi, hit new high against US dollar Monday as the central parity rate of the yuan was set at $6.6732 per dollar, according to the data released by the China Foreign Exchange Trading System.

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Monday's central parity rate beat the previous record of 6.6830 on Oct 8.

The yuan has picked up its strength against the?US dollars and 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.

Based on Monday's central parity, the Chinese currency has strengthened against the US dollar by about 2.26 percent from the rate of $6.8275 per dollar that was 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.

China would continue reform of the formation mechanism of its currency exchange rate to improve its flexibility, but will do so in a gradual way, Zhou Xiaochuan, governor of the People's Bank of China, China's central bank, said in Washington on Sunday.