The yuan hit a record exchange rate of 6.2122 to the US dollar during intra-day trading Wednesday, according to the China Foreign Exchange Trade System (CFETS). It was the strongest level against the dollar since China launched its modern foreign exchange market in 1994.
Foreign exchange traders attributed the recent strength of the yuan against the dollar partly to China's economic recovery.
China's economic rebound, albeit weak, will likely attract foreign capital to yuan-denominated assets, driving demand for the currency, news portal sina.com.cn said Wednesday, citing an anonymous analyst.
The People's Bank of China set the yuan's central parity rate to 6.2716 against the US dollar Wednesday, according to the CFETS.
In China's foreign exchange spot market, the yuan is allowed to rise or fall by 1 percent from the central parity rate each trading day.
Copyright ©1999-2011 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.
