Yuan weakens three basis points to 6.5886 per U.S.dollar
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The Chinese currency, Renminbi (RMB), Friday weakened slightly against the U.S. dollar after hitting an all-time high Thursday, according to the China Foreign Exchange Trading System.
The central parity rate of RMB, or the yuan, retreated three basis points to 6.5886 per U.S. dollar. The rate strengthened to a record high of 6.5883 against the U.S. dollar Thursday,
The yuan appreciated 3.6 percent last year, but accelerating inflation has led some analysts to predict it could rise further against the dollar this year as the People's Bank of China (PBOC), the central bank, attempts to cool soaring prices.
PBOC announced in June 2010 it would further reform the exchange rate formation mechanism to improve its flexibility.
On China's foreign exchange spot market, the yuan can rise or fall 0.5 percent from the central parity rate each trading day.
The central parity rate of the RMB against the U.S. dollar is based on a weighted average of prices before the opening of the market each business day.
