China's yuan ended at a post-revaluation record high for the second straight day on Thursday, although the central bank intervened to prevent steeper gains. The currency finished at 8.0805 to the dollar on Thursday, compared with Wednesday's close of 8.0816.
The yuan, which was revalued by 2.1 percent on July 21 to 8.11 per dollar, has now appreciated a further 0.37 percent since the groundbreaking policy.
Still, dealers said the yuan was poised to breach the pivotal level in the coming days, given that the dollar had lost some of its steam.
On global markets, the dollar steadied on Thursday after slipping for two sessions on growing signs that after 12 straight interest rate rises the US Federal Reserve may be nearing the end of its tightening cycle.
But traders said the dollar's interest rate advantage was intact as an expected euro zone rate rise on December 1 was unlikely to herald an extended tightening campaign, and the Bank of Japan was seen keeping short-term rates near zero until at least well into 2006.
The dollar's strength and US interest rate rises have diverted funds flowing into China to speculate on the yuan's appreciation and has eased outside pressure for Beijing to take quick action on the yuan, though such pressure has not disappeared, dealers said.
The yuan firmed against the euro to close at 9.5307 versus 9.5638 on Wednesday, and rose to 6.7919 per 100 yen from 6.8123, the central bank said on its official Web site.
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