China's yuan hit a fresh post-revaluation high against the dollar on Thursday for the fourth straight day, after the Chinese central bank again set a higher reference rate for the currency. But the yuan pulled back from near the psychologically important 7.4500 level, which many traders think, could become a short-term ceiling.
They believe the central bank may act to halt the yuan's rise at any time, possibly as soon as on Friday. "It's not the first time that the central bank has engineered a short period of faster yuan appreciation. Such a period is usually followed by a temporary pull-back," said a Shanghai dealer at a major Chinese state-owned bank.
The yuan closed at 7.4543 to the dollar, up from Wednesday's close of 7.4630 but off an intra-day high of 7.4516 after a rapid pull-back in the final half-hour of trade.
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