Yuan hits record high against U.S. dollar

[Rubber Duck]

The central parity rate for yuan against U.S. dollar rose to new high on Monday, the first trading day when the daily floating band for the spot rate in the interbank foreign exchange market is expanded.

The central parity rate for the yuan, also known as Renminbi (RMB), reached 7.6652 to one U.S. dollars on Monday, gaining 152 basis points from Friday's reference rate of 7.6804 to the hard currency.

The yuan has climbed 1,435 basis points from 7.8087 yuan to one U.S. dollar posted on the last business day of 2006.

On Friday, the People's Bank of China announced to widen the floating band of yuan against U.S. dollar for daily spot trading on the interbank market from 0.3 percent to 0.5 percent as of May 21.

The new move will be conducive to growth of forex market, making the yuan more flexible, enhancing the strength against risks of enterprises and financial institutions and sharpening their competitive edge, said the central bank......

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