The value of the Renminbi (RMB) against the U.S. dollar hit a new high on Tuesday.

The central parity rate of the RMB against the U.S. dollar was set by the People's Bank of China at 7.9342 yuan on Tuesday. The previous day the central parity rate was set at 7.9431 yuan to the U.S. dollar.

China has seen a continuous appreciation in its RMB since the central bank raised the one-year benchmark interest rate on Aug. 19. The country's rocketing trade surplus has given the RMB a boost.

Last month China's trade surplus hit a monthly high of 18.8 billion U.S. dollars, with exports rising 32.8 percent to 90.77 billion U.S. dollars.

Market observers are expecting a further widening of the daily floating band between the RMB and the U.S. dollar.

China set a floating band of 0.3 percent when it launched reforms of the RMB exchange rate system last July. The floating band allows the yuan to rise or fall 0.3 percent on the inter-bank foreign exchange market.

On Monday, the RMB's value against the U.S. dollar on the inter-bank market rose 0.29 percent from the set central parity rate.

(Xinhua News Agency September 19, 2006)