Spot yuan on Thursday ended at its highest closing level against the dollar since its landmark revaluation in July 2005 as concerns over the impact of the global dollar slide on the yuan dominated the Chinese market.
The People's Bank of China posted a set of data this week that showed the central bank and other Chinese institutions spent the most money in eight months to buy foreign exchange flowing into the country in September, a strong sign of rising capital inflows amid a weakening dollar and a rising yuan.
The yuan finished at 6.6508 against the dollar, near a post-revaluation intraday high of 6.6503 hit about five minutes before the close and up from Wednesday's finish of 6.6641. The PBOC earlier fixed the mid-point at a record high of 6.6582. Three-month dollar/yuan NDFs fell to a record low of 6.5495 bid in late trade, implying another 1.66 percent in yuan appreciation in the next three months.
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