China's currency, the yuan, Tuesday continued the upward trend in the previous trading day to break the 6.92 mark, setting a new high against the U.S. dollar after the country reformed its currency policy in July 2005.
On Tuesday, the central parity rate of the yuan, or Renminbi (RMB), was set at 6.9199 yuan against one U.S. dollar, according to the China Foreign Exchange Trading System. The reference rate was up 39 basis points from last Friday's 6.9238.
This was the 42nd times that the Chinese currency set a new high against the greenback. It has risen more than 5.5 percent against the U.S. dollar so far this year, in comparison with the 6.9 percent gain last year.
Despite economic slowdown on weaker exports, Chinese authorities would continue to allow gradual appreciation of the yuan against the dollar to tame inflation, analysts believed.
A research report published on June 3 by the People's Bank of China, the central bank, said the pressures for broad-based price rises were still the biggest risk for the macro-economy.
Tuesday also saw RMB gained 102 basis points against the European currency to 10.7812 yuan for one euro and 520 basis points against the Japan's currency to 6.4799 yuan for 100 Japanese yen.
(Xinhua News Agency June 10, 2008)
