China's yuan closed at a post-revaluation closing high of 8.0796 to the dollar on Tuesday after the dollar tumbled on global markets overnight. The yuan, which was revalued by 2.1 percent on July 21 to 8.11 per dollar, has now appreciated a further 0.38 percent.
Dealers attributed the yuan's rise to the weakness of the dollar, which tumbled against the euro and the yen the previous day due to soft US home sales data.
However, dealers said such strength was not sustainable, as the dollar on Tuesday recouped some of its losses on expectations US interest rates would keep rising in the near term.
On Tuesday two deals were done on the onshore forwards market. One-year forwards were fixed at 7.7825 per dollar, anticipating that the yuan would be about 3.9 percent stronger in about a year's time.
The yuan weakened against the euro to close at 9.5453 versus 9.4504 on Monday, and also softened to 6.7866 per 100 yen from 6.7419, the central bank said on its Web site.
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