China yuan hits record high against USD Wednesday

The Chinese currency Renminbi, or yuan, strengthened 52 basis points to a record high of 6.1300 against the U.S. dollar on Wednesday, according to the China Foreign Exchange Trading System.

The U.S. dollar dropped against other major currencies overnight.Investors remain cautious before Friday's U.S. nonfarm payrolls data for November, which is seen hinged on whether the Fed does start reducing its 85 billion dollars of monthly bond purchases.

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.

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.