Yuan spot price hits record high for third day

The spot price of the yuan against the U.S. dollar rose to 6.2252 to hit a record high for the third consecutive day, according to the China Foreign Exchange Trading System.

The yuan's price against the greenback rose by the 1-percent daily trading limit to 6.2252 soon after trading began Wednesday morning.

It was a record high since the country launched its foreign exchange reforms in 2005, a move aimed to add more flexibility to the yuan's value.

The spot price rose to 6.2262 Tuesday, which had been a record and had followed Monday's high of 6.2920.

The central parity rate of the yuan strengthened 10 basis points to 6.2881 against the U.S. dollar on Wednesday.

The figure marked a rise for seven consecutive trading days, foreign exchange data showed.

Zhou Hao, an analyst at the Australia & New Zealand Banking Corp., said the growing trade surplus was the main cause for hikes in the yuan's value. There was a trade surplus of 32 billion U.S. dollars in October.

The yuan's value will continue to go up because of the economy's stabilizing growth and the third round of quantitative easing in the U.S.. However, room for further appreciation might be limited, researchers at the consulting agency Anbound said.

In the foreign exchange spot market, the yuan is allowed to rise or fall by 1 percent from the central parity rate each trading day.

The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices before the opening of the market each business day.