Yuan hits new record high at 6.1114 against USD Tuesday

The Chinese currency Renminbi, or the yuan, rose to a new record high against the U.S. dollar on Tuesday.

The yuan strengthened 16 basis points to reach 6.1114 per U.S. dollar, the strongest since July 2005, when the country launched reforms of the exchange rate mechanism, according to the China Foreign Exchange Trading System.

The People's Bank of China on Monday set the dollar-yuan central parity rate at 6.1130, stronger than Friday's 6.1232. This was in line with broad dollar weakness despite better-than-expected U.S. job data released on Friday.

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.