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The yuan hit a record high against the dollar on Wednesday after the People's Bank of China set an all-time high mid-point, indicating that currency appreciation was still on the cards. Spot yuan closed at 6.4595, off the all-time high of 6.4556 against the dollar, but up from Tuesday's close of 6.4634.
It has now appreciated 5.68 percent since it was depegged from the dollar in June 2010 and 2.02 percent so far this year.
Before trade began the PBOC fixed the yuan's mid-point at a record high of 6.4592, up from the previous day's 6.4684 and compared with the fixing's historical high of 6.4640 set on July 14.
Offshore, benchmark one-year dollar/yuan non-deliverable forwards (NDFs) were bid at 6.3895 late on Wednesday, down slightly from 6.4000 at the previous day's close.

Copyright Reuters, 2011

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