China's Yuan rises 2 basis points to new high of 6.5883 per USD
The Chinese currency, Renminbi (RMB), Thursday rose 2 basis points from previous trading day to a record high of 6.5883 vs the USD, according to the China Foreign Exchange Trading System.
The central parity rate of RMB, or the Yuan, was 2 basis points stronger than the previous record of 6.5885 set Wednesday.
The Yuan appreciated 3.6% last year, but accelerating inflation has led some analysts to predict it could rise further against the USD this year as the People's Bank of China (PBOC), the central bank, attempts to cool price pressures.
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% from the central parity rate each trading day.
The central parity rate of the RMB against the USD is based on a weighted average of prices before the opening of the market each business day.-Paul A. Ebeling, Jnr. www.livetradingnews.com